During 2014 Wheeler Inc. had sales on account of $528,000, cash sales of $216,000, and collections on account of $336,000. In addition, they collected $5,800 which had been written off as uncollectible in 2013. As a result of these transactions the change in the accounts receivable indicates a
A) $402,200 increase.
B) $192,000 increase.
C) $186,200 increase.
D) $408,000 increase.

Question

Quizplus · Accepted Answer

Accounts receivable increased by $192,000, calculated as follows: Sales on account ($528,000) minus collections on account ($336,000). The $5,800 collected from previously written-off accounts does not affect the accounts receivable balance for 2014.