Sign In Sign Up Ask an AI advisor
lovehelping7095
lovehelping7095
05.04.2021 • 
Business

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $73,200 and $3,400, respectively. During Year 2, Kincaid reported $201,000 of credit sales, wrote off $1,900 of receivables as uncollectible, and collected cash from receivables amounting to $246,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. What is the amount of uncollectible accounts expense that will be reported on the Year 2 income statement?
a. $732
b. $1,900
c. $2.010
d. 2,467
Which of the following describes the effects of writing off the uncollectible accounts?
a. Does not affect assets or stockholders' equity
b. Increase assets and stockholders' equity
c. Increase assets and decrease stockholders' equity
d. Decrease assets and stockholders' equity
What effect will recognizing the uncollectible accounts expense for Year 2 have on the elements of the financial statements?
a. Increase total assets and retained earnings
b. Increase total assets and decrease net income
c. Decrease total assets and increase retained earnings
d. Decrease total assets and net income
What is the net realizable value of receivables that will be reported on Kincaid's Year 2 balance sheet?
a. $22,090
b. $25,600
c. $23,590
d. $27.500

Solved
Show answers

Ask an AI advisor a question

I want advice