Chapter 5, Problem 24P

a.

To determine

Determine the amount of cash collected from accounts receivable by Company MA during 2018.

b.

To determine

Determine the amount that should be recorded by Company MA as uncollectible accounts expense for 2018.

c.

To determine

Determine the net realizable value of receivables at the end of 2018.

d.

To determine

Show the effects of the transactions in Requirement c on the financial statements by recording the appropriate amounts in a horizontal statements model. In the cash flow statements, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event.