In its December 31 balance sheet, Butler Co. reported trade accounts receivable of $250,000 and related allowance for uncollectible accounts of $20,000. What is the total amount of risk of accounting loss related to Butler’s trade accounts receivable, and what amount of that risk is off-balance-sheet risk?
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|
Risk of accounting loss |
Off-balance-sheet risk |
|
|
a. |
$0 |
$0 |
|
b. |
$230,000 |
$0 |
|
c. |
$230,000 |
$20,000 |
|
d. |
$250,000 |
$20,000 |