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TB MC Qu. 07-68 (Static) On December 31, Year 1, the Loudoun Corporation... On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of Loudoun Company writing off the customer's account? Balance Sheet =Liabilities+ Stockholders' Equity Income Statement Assets Net Realizable Accounts Common Cash + Value Payable + Stock a. NA NA NA NA Retained + Earnings NA Statement of Cash Revenue NA Expense = Net Income NA NA Flows NA b. NA (1,050) NA NA (1,050) (1,050) NA (1,050) NA C. NA (1,050) (1,050) NA NA NA NA NA NA d. NA NA 1,050 (1,050) NA NA (1,050) (1,050) NA Multiple Choice Option A ○ Option D

TB MC Qu. 07-68 (Static) On December 31, Year 1, the Loudoun Corporation... On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of Loudoun Company writing off the customer's account? Balance Sheet =Liabilities+ Stockholders' Equity Income Statement Assets Net Realizable Accounts Common Cash + Value Payable + Stock a. NA NA NA NA Retained + Earnings NA Statement of Cash Revenue NA Expense = Net Income NA NA Flows NA b. NA (1,050) NA NA (1,050) (1,050) NA (1,050) NA C. NA (1,050) (1,050) NA NA NA NA NA NA d. NA NA 1,050 (1,050) NA NA (1,050) (1,050) NA Multiple Choice Option A ○ Option D

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TB MC Qu. 07-68 (Static) On December 31, Year 1, the Loudoun Corporation... On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of Loudoun Company writing off the customer's account? Balance Sheet =Liabilities+ Stockholders' Equity Income Statement Assets Net Realizable Accounts Common Cash + Value Payable + Stock a. NA NA NA NA Retained + Earnings NA Statement of Cash Revenue NA Expense = Net Income NA NA Flows NA b. NA (1,050) NA NA (1,050) (1,050) NA (1,050) NA C. NA (1,050) (1,050) NA NA NA NA NA NA d. NA NA 1,050 (1,050) NA NA (1,050) (1,050) NA Multiple Choice Option A ○ Option D
Transcribed Image Text:TB MC Qu. 07-68 (Static) On December 31, Year 1, the Loudoun Corporation... On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of Loudoun Company writing off the customer's account? Balance Sheet =Liabilities+ Stockholders' Equity Income Statement Assets Net Realizable Accounts Common Cash + Value Payable + Stock a. NA NA NA NA Retained + Earnings NA Statement of Cash Revenue NA Expense = Net Income NA NA Flows NA b. NA (1,050) NA NA (1,050) (1,050) NA (1,050) NA C. NA (1,050) (1,050) NA NA NA NA NA NA d. NA NA 1,050 (1,050) NA NA (1,050) (1,050) NA Multiple Choice Option A ○ Option D
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