What is the acidminus−test ratio for a merchant with the following accountbalances? (Round your answer to...
What is the
acidminus−test
ratio for a merchant with the following accountbalances? (Round your answer to two decimal places.)
|
Cash |
$ 21 comma 000$21,000 |
|
Shortminus−term investments |
40 comma 00040,000 |
|
Net current receivables |
54 comma 00054,000 |
|
Merchandise inventory |
91 comma 00091,000 |
|
Total current liabilities |
279 comma 000279,000 |
he following information is from the records of Mountainview Camera Shop:
|
Accounts receivable, December 31, 2018 |
$ 85 comma 000$85,000 (debit) |
|
Net credit sales for 2018 |
161 comma 000161,000 |
|
Accounts written off as uncollectible during 2018 |
19 comma 00019,000 |
|
Cash sales during 2018 |
44 comma 00044,000 |
The company uses the direct
writeminus−off
method for bad debts. What is the amount of bad debts expense?
A.
$ 85 comma 000$85,000
B.
$ 44 comma 000$44,000
C.
$ 57 comma 000$57,000
D.
$ 19 comma 000
Homework Answers
Acid test ratio = Quick assets / Current liabilities
= (21,000+40,000+54,000)/279,000
= 0.41
As per HomeworkLib answering guidelines I answered your first question.
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