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