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lana66690 [7]
3 years ago
14

12/31/06Accounts receivable $525,000Allowance (45,000)Cash realizable value 480,000During 2007 sales on account were $145,000 an

d collections on account were $86,000. Also, during 2007 the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $54,000.48. The change in the cash realizable value from the balance at 12/31/06 to 12/31/07 wasa. $50,000 increaseb. $59,000 increasec. $42,000 increased. $51,000 increase
Business
1 answer:
alekssr [168]3 years ago
5 0

Answer:

c. $42,000 increase

Explanation:

The computation of the change in cash realizable value is shown below:

= Adjusted cash balance - Cash realizable value

where,

Adjusted cash balance = Ending balance of accounts receivable + sales on account - collections - written off amount - bad debt expense

= $525,000 + $145,000 - $86,000 - $8,000 - $54,000

= $522,000

And, the cash realizable value is $480,000

Now put these values to the above formula

So, the value would be equal to

= $522,000 - $480,000

= $42,000 increase

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3 years ago
Harold and Zack have pooled their money together to buy real estate but have filed no formal papers to form a business. Harold,
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If the government sets a price floor of $5 per bushel, ____ bushels of corn are produced, of which ___ are purchased by consumer
11Alexandr11 [23.1K]

Answer: If the government sets a price floor of $5 per bushel, Say 1000 bushels of corn are produced, of which 300 bushels are purchased by consumers, and 700 bushels by the government. The program costs the government $3500. Farmers receive $5000 in total revenue.

Explanation: A price floor is a legitimate minimum value that the government sets on a product in the market, usually to protect the suppliers/farmers. Using the ballpark values as in the answer, to estimate and explain the concept of a price floor:  

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I hope this helps to understand the concept of price floors.

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Which of the following scenarios best exemplifies a platform business?Devin purchases electronic parts from a variety of vendors
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