The following information is related to December 31, 2016 balances. During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. The change in the cash realizable value from the balance at 12/31/16 to 12/31/17 was
A)136,000 increase.
B)$160,000 increase.
C)$114,000 increase.
D)$138,000 increase.

Question

The following information is related to December 31, 2016 balances.  During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. The change in the cash realizable value from the balance at 12/31/16 to 12/31/17 was
A)136,000 increase. 
B)$160,000 increase. 
C)$114,000 increase. 
D)$138,000 increase.

Quizplus · Accepted Answer

The Answer of The following information is related to December 31, 2016 balances.  During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. The change in the cash realizable value from the balance at 12/31/16 to 12/31/17 was
A)136,000 increase. 
B)$160,000 increase. 
C)$114,000 increase. 
D)$138,000 increase.

The Following Information Is Related to December 31, 2016 Balances