X2 issued callable bonds on January 1, 2024. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Cash Paid Interest Expense Decrease in Carrying Value Carrying Value $104,212 103,465 Date 01/01/2024 12/31/2024 $7,000 $6,253 12/31/2025 12/31/2026 12/31/2027 12/31/2028 K2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2025 and retires them. What gain or loss, if any, would X2 record on this date? Multiple Choice O O $3,000 gain 7,000 7,000 7,000 7,000 No gain or loss $327 loss $1,202 loss 6,208 6,160 6,110 6,057 $747 792 840 890 943 102,673 101,833 100,943 100,000

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Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.