The Quincy receivable file shows total billed of $96,500, disputed amount of $8,500, and cash collected of $64,000. What undisputed open amount remains?
Correct Answer
D) $24,000
Undisputed open amount equals total billed less disputed amount and cash collected.
Why This Is the Correct Answer
Undisputed open amount equals total billed less disputed amount and cash collected.
Why the Other Options Are Wrong
Option A: $32,500
$32,500 is above the supported result for undisputed receivable; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $88,000
$88,000 is above the supported result for undisputed receivable; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $72,500
$72,500 is above the supported result for undisputed receivable; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Collection Manager money test: bucket before math for undisputed receivable.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Business Administration, Receivable Controls and Collection Files; use the stated business record or control rule to verify the answer.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?