Financial Accounting

Week 6 Problem Sets

Part 1

• Answer the following question: What is meant by the net realizable value for accounts receivable?
• Answer the following question: What is aging of accounts receivable, and how is it used to account for uncollectible accounts?
• Answer the following question: How is the accounts receivable turnover computed? What information does this ratio provide?
• Answer the following question: Describe what is meant by the term “goodwill.”

Part 2

• Exercise 7-13A page 395 (attached)
• Problem 8-34A page 460 (attached)
• Exercise 8-9A page 451 (attached)

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