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Quiz - Chapter 7 with Solutions

# Quiz - Chapter 7 with Solutions - Quiz Chapter 7 1 Use the...

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Total Allowance Accounts Receivable current > 90 days Needed \$210,000 \$200,000 \$10,000 % uncollectible estimate 5.0% 50.0% \$10,000.0 \$5,000.0 \$15,000 Quiz – Chapter 7 1. Use the following information to answer questions 1 - 3. On December 1st, Viking Inc.’s accounts receivable has a balance of \$200,000. The net realizable value was \$195,000. Viking uses the aging method to estimate bad debt. At the end of December, Vikings aged their receivables and the results showed that the age of the \$210,000 accounts receivable balance was: \$200,000 under 30 days and Viking expects that 5% will be uncollectible. The remaining \$10,000 is now over 90 days old and Viking only expects to recover 50% of those receivables. How much will Viking write-off during the month of December? a. \$10,000 b. \$5,000 c. \$0 d. \$15,000 Nothing written off. Everything above still has to do with estimates. You don’t write-off until you’re sure it is a bad debt.

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