Answer:
Expected cash balance = $48000
Explanation:
Given
Cash receipts = 171000
Cash disbursements = 158000
Starting period = 35000
Minimum desired cash balance = 10000
From the above,
Cash available = Cash receipts + starting period
= 171000 + 35000
= 206000
Therefore,
Cash balance at the month end
= Cash available - Cash disbursements (payments)
= 206000 - 158000
= $48000
The amount of loss that should be recognized is the <u>minimum amount </u><u>of the </u><u>range. </u>
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<h3>Recording a Contingent liability </h3>
- It should only be recorded if the loss is probable and the amount to be incurred as liability can be reasonably estimated.
- If neither of the above are possible, the loss would be recorded as a footnote.
US GAAP rules state however that if the loss is probable and the amount is in a range, the amount to be recorded as a contingent liability should be the minimum of the range.
In conclusion, they should recognize the minimum amount.
Find out more on contingent liabilities at brainly.com/question/17371330.
Well, you don't have exact information for me to solve it.
