IFRS implies that receivables with different characteristics should be reported
ID: 2475730 • Letter: I
Question
IFRS implies that receivables with different characteristics should be reported separately. requires that receivables with different should be reported separately. implies that receivables with different characteristics should be reported as one unsegregated amount. requires that receivables with different should be reported as one unsegregated amount. A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts will be 3% of sales. If Allowance for Doubtful Accounts has a credit balance of $3,000 prior to adjustment, its balance after adjustment will be a credit of $19,500. $22,500. $22,560. $25,500. A cash discount is usually granted to all of the following except retail customers. retailers. wholesalers. All of these are granted discounts. An analysis and aging of the accounts receivable of Downs Company at December 31 revealed the following data: Accounts Receivable $80,000 Allowance for Doubtful Accounts per books before adjustment (Cr.) 50,000 Amounts expected to become uncollectible 5300 The cash realizable value of the accounts receivable at December 31, after adjustment, is: $694,000. $747,000. $750,000. $794,000.Explanation / Answer
7.a.19500
750000*3%
=22500-3000
19500
8.A. retail customers.