Question

The company did not accrue $1,900 owed to it by another company renting part of the building as a storage facility. What is the status of the amount owed?

1) The amount is still owed and needs to be collected.
2) The amount has been paid in full.
3) The amount has been partially paid.
4) The amount has been written off as bad debt.

Answer 1

The $1,900 not accrued by the company is still owed and should be collected. It has neither been paid nor written off.

Step-by-step explanation:

The amount of $1,900 that was not accrued by the company is still owed by another company. This means that the company renting the storage facility has not yet paid the amount, and the company that is owed the money should take steps to collect the debt. As the money has not been accounted for as a receivable in the company's books, it might be an oversight in their accounting process which they need to correct. It is not indicative of the money having been paid in full, partially paid, or written off as bad debt.