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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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