On December 31,2016,the West Corporation estimated that $6,000 of its receivables might not be collected.Before adjusting entries,the balance of Accounts Receivable and the Allowance for Doubtful Accounts respectively was $150,000 and zero on 12/31/16.On February 1,2017,West wrote-off of a delinquent account from one of its customers.West Corp.uses the allowance method of accounting for uncollectible accounts.Indicate whether each of the following statements is true or false.
_____a)The net realizable value of accounts receivable (after the appropriate adjusting entry on 12/31/16)was $144,000.
_____b)The write-off of the account on 2/1/2017 did not affect the net realizable value of West's accounts receivable.
_____c)The adjusting entry on 12/31/16 had no effect on West's total assets.
_____d)The write-off entry on 2/1/16 had no effect on West's total assets.
_____e)The write-off entry on 2/1/16 decreased net income for 2017.

Question

Quizplus · Accepted Answer

The Answer of On December 31,2016,the West Corporation estimated that $6,000 of its receivables might not be collected.Before adjusting entries,the balance of Accounts Receivable and the Allowance for Doubtful Accounts respectively was $150,000 and zero on 12/31/16.On February 1,2017,West wrote-off of a delinquent account from one of its customers.West Corp.uses the allowance method of accounting for uncollectible accounts.Indicate whether each of the following statements is true or false.
_____a)The net realizable value of accounts receivable (after the appropriate adjusting entry on 12/31/16)was $144,000.
_____b)The write-off of the account on 2/1/2017 did not affect the net realizable value of West's accounts receivable.
_____c)The adjusting entry on 12/31/16 had no effect on West's total assets.
_____d)The write-off entry on 2/1/16 had no effect on West's total assets.
_____e)The write-off entry on 2/1/16 decreased net income for 2017.

On December 31,2016,the West Corporation Estimated That $6,000 of Its