The allowance for uncollectible accounts of a company has a balance, before year-end adjustments, of 24.200€. After a careful review of the collections process, management decided to write-off receivables for an amount of 33.100€. Account receivables has an ending debit balance of 432.000€. The estimate for non-collections that the company has been applying over the last years, has been 5%. What would be the amount which would reflect on the income statement the effect of all these adjustments taking place in the receivables account at year end? Select one: а. 30,500 b. 12,700 c. I dont know d. 21,600 е. 35,700

The allowance for uncollectible accounts of a company has a balance, before year-end adjustments, of 24.200€. After a careful review of the collections process, management decided to write-off receivables for an amount of 33.100€. Account receivables has an ending debit balance of 432.000€. The estimate for non-collections that the company has been applying over the last years, has been 5%. What would be the amount which would reflect on the income statement the effect of all these adjustments taking place in the receivables account at year end? Select one: а. 30,500 b. 12,700 c. I dont know d. 21,600 е. 35,700

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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