Question

Hamilton decided to write off two accounts during the year because those customers had declared bankruptcy and likely would not pay the combined $3000 they owed Hamiltons. The total amount that customers owed Hamiltons after writing off the two accounts totaled $22,000.

a. $25,000

b. $19,000

c. $20,000

d. $18,000

Answer 1

To find the total amounts owed to Hamiltons before the write-off, the $3000 from the bankrupt customers is added to the remaining $22,000, totaling $25,000.

Step-by-step explanation:

The question involves a scenario where Hamilton's company writes off $3000 due to bankrupt customers and wants to know what the total accounts receivable were before the write-off. To find the original amount that customers owed Hamiltons before the two accounts totaling $3000 were written off, we add the write-off amount to the remaining accounts receivable. Thus, the calculation is: $22,000 (remaining accounts receivable) + $3000 (written-off accounts) = $25,000.

n this question, Hamilton wrote off two accounts because the customers had declared bankruptcy and were unlikely to pay the combined $3000 they owed Hamiltons. After writing off these accounts, the total amount owed by customers was $22,000.

The correct answer to the question is that customers owed Hamiltons a combined total of $25,000 before writing off the two accounts.