InsertTable edia Comment E8-7 on page 409. E8-10 on page 410. Multiple Choice: (

Question

InsertTable edia Comment E8-7 on page 409. E8-10 on page 410. Multiple Choice: (1) M. Cornett is a corporation that sells breakfast cereal. Based on the accounts listed below, what are M. Cornett's total trade receivables? Income tax refund due Advance due to the company from the company president 3-month note due from M. Cornett's main customer Interest due this month on the above note $ 500 300 2,000 100 9,000 1,000 Due and unpaid from this month's sales Due and unpaid from last month's sales a. $10,000 b. $12,000 e. $11,000 d. $12,900 (2) Nichols Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $250,000 and credit sales are $1,000,000. luaton thot d% ofaccounts receivable will be uncollectible. What adjusting

Explanation / Answer

Solution is b)$12000

Calculation:-

3-month note due from M. Cornett's main customer = $2000 Due and unpaid from this month's sales = $9000 Due and unpaid from last month's sales = $1000 2000 + 9000 + 1000 = $12000

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