Cash realizable value $ 490,000
During 2013, sales on account were $145,000 and collections on
account were $100,000. Also during 2013, the company wrote off
$8,000 in uncollectible accounts. An analysis of outstanding receivable
accounts at year end indicated that uncollectible accounts should be
estimated at $40,000.
Bad debts expense for 2013 is
$40,000.
$13,000.
$5,000.
$8,000.
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Multiple Choice Question 118
If a retailer regularly sells its receivables to a factor, the service charge
of the factor should be classified as a(n)
contra asset.
other expense.
selling expense.
interest expense.
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Multiple Choice Question 104
During 2013, Alfred Inc. had sales on account of $132,000, cash sales
of $54,000, and collections on account of $84,000. In addition, they