question archive Accounts receivables of York Company show a debit balance of TL 208
Accounts receivables of York Company show a debit balance of TL 208
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Accounts receivables of York Company show a debit balance of TL 208.000 on December 31, 2016. The impairment analysis for receivables shows that the net recoverable amount is TL 194.600. Also, Allowance for Uncollectible Accounts has a credit balance of TL 1.600 before the adjustment. 7. What is the impairment loss or recovery for the period? a. TL 11.800 impairment loss b. TL 11.800 recovery of impairment loss c. TL 13.400 impairment loss d. TL 13.400 recovery of impairment loss 8. What is the ending balance of Allowance for Uncollectible Accounts? a. TL 11.800 b. TL 13.400 c. TL 10.200 d. TL 206.400
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1. The Impairment in the Accounts Receivables is:
| Book Value | 208,000 |
| Less: Net recoverable value | 194,600 |
| Impairment | 13,400 |
The allowance already has credit balance of 1,600. Thus required Impairment Loss is 13400 - 1600 = TL 11,800.
Option A is Correct.
2. Ending Balance of Allowance for Uncollectible accounts is TL 13,400 as Computed above. Thus Option B is Correct.
