The following information is related to December 31, 2021 balances. During 2022, sales on account were $390,000 and collections on account were $230,000.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 12/31/21 to 12/31/22 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, 2021 balances.  During 2022, sales on account were $390,000 and collections on account were $230,000.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 12/31/21 to 12/31/22 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, 2021 balances.  During 2022, sales on account were $390,000 and collections on account were $230,000.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 12/31/21 to 12/31/22 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, 2021 Balances