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laiz [17]
3 years ago
15

On january 1, year 2, kincaid company's accounts receivable and the allowance for doubtful accounts carried balances of $31,000

and $500, respectively. during the year kincaid reported $72,500 of credit sales. kincaid wrote off $550 of receivables as uncollectible in year 2. cash collections of receivables amounted to $74,550. kincaid estimates that it will be unable to collect one percent (1%) of credit sales.the net realizable value of receivables appearing on kincaid's year 2 balance sheet will amount to:
Business
1 answer:
Gala2k [10]3 years ago
3 0

Answer:

$27,725

Explanation:

Given that,

kincaid company's accounts receivable = $31,000

Allowance for doubtful accounts at January 1 = $500

Wrote off receivables as uncollectible = $550

1% of credit sales

cash collections of receivables = $74,550

Accounts receivable:

= Accounts receivable at January 1 + Credit sales - Wrote off receivables as uncollectible - Cash collection of receivables

= $31,000 + $72,500 - $550 - $74,550

= $28,400

Accounts for Doubtful Accounts:

= Allowance for doubtful accounts at January 1 - Wrote off receivables as uncollectible + 1% of credit sales

= $500 - $550 + (0.01 × $72500)

= $500 - $550 + $725

= $675

Net realizable value of receivables:

= Accounts receivable - Accounts for Doubtful Accounts

= $28,400 - $675

= $27,725

Therefore, the net realizable value of receivables appearing on kincaid's year 2 balance sheet will amount to $27,725.

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Answer:

a. The first payment is received at the end of the first year, and interest is compounded annually.

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3 years ago
Roberta is a customer service representative at a car rental company. Read the passage. Which actions might lead to increased cu
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Answer:

Training

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Another strategy is to use surveys after the calls to know what are the opinions of clients regarding services. It allows to identify improvement opportunities.

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What is the BEST way to stay organized? Person with a descriptive and correct one sentence answer will receive brainliest for th
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1. What does it mean to set up an “automatic deposit” and why is this a good savings strategy?
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an automatic deposit will put a set amount of money away into savings without you having to do it that way you will not have to worry about it and won't be tempted to spend it instead of saving it. it's a good strategy because it eliminates that temptation and makes it so much easier to save without falling off track

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2 years ago
Below is information from the financial statements of Greenwich Company: Accounts receivable (net) 2016: $2,400 Accounts receiva
ra1l [238]

Answer:

32.44 days

Explanation:

The computation of the average collection period is shown below:

But before that we have to determine the account receivable turnover ratio

So, the account receivable turnover ratio is

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= $25,875 ÷ ($2,400 + $2,200) ÷ 2

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= 32.44 days

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