Business, 29.11.2019 03:31 MeHelp101

Wechsler company uses the aging of accounts receivable method. the company performed an aging of accounts receivable on december 31 and gathered the following information: accounts receivable $605,000 unadjusted credit balance in allowance for doubtful accounts 84,000 estimated uncollectible accounts receivable 93,000 what is the amount of accounts receivable, net that will be reported on the balance sheet at december 31?

a. $596,000
b. $512,000
c. $521,000
d. $419,000

Answers: 2

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Answer from: aj12381

The amount of accounts receivable Net = 512000

so correct option is b. $512,000

Explanation:

given data

Accounts receivable = $605,000

Doubtful Accounts = $84,000

Accounts Receivable = $93,000

to find out

amount of Accounts Receivable, Net that will be reported on the balance sheet

solution

we know bad debt expense is difference between 93,000 and 84,000 i.e 9000

so new balance of Allowance for doubtful debts = 93,000

so we can say The amount of accounts receivable Net is

The amount of accounts receivable Net = 605,000 - 93,000

The amount of accounts receivable Net = 512000

so correct option is b. $512,000

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

Answer from: Quest

Answer positive;

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