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Obama & Michelle Inc writes off receivable totalling $8,900 during the period. The allowance for doubtful accounts (AFDA) at the beginning of the period is 7,000 credit. Near the end of the period, before the financial statement are prepared, a customer whose receivable balance had previously been written off, sent in a cheque for 700
Problem 1: What is the balance in the Allowance for Doubtful Account before the AFDA is updated for the current period uncollectable
Option 1: 1,200 credit
Option 2: 15,200 debit
Option 3: 1,200 debit
Option 4: 2,600 debit
Option 5: 15,200 credit
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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