1. Under IFRS, accounts receivable can be accounted for at fair value whenever company management wants to do so. True False 2. Accounting for the pledging of accounts receivable as collateral for a loan requires: Reporting the receivables net of the borrowed amount. Removal of the pledged receivables from current assets and including them with noncurrent investments. Disclosure of the arrangement in notes to the financial statements. None of the above. 3. At January 1, 2011, Farley Co. had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on past experience, 2 percent of Farley’s credit sales have been uncollectible. During 2011, Farley wrote off $650,000 of accounts receivable. Credit sales for 2011 were $18,000,000. In its December 31, 2011 balance sheet, what amount should Farley report as allowance for uncollectible accounts? $230,000. $360,000. $590,000. $880,000.
1 FALSE 2 NONE OF THE ABOVE 3 $230,000