Using the following information: During 2014, sales on account were €290,000 and collections on account were €172,000. Also during 2014, the company wrote off €16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €118,000. The change in the cash realizable value from the balance at 12/31/13 to 12/31/14 was a

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Using the following information:  During 2014, sales on account were €290,000 and collections on account were €172,000. Also during 2014, the company wrote off €16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €118,000. The change in the cash realizable value from the balance at 12/31/13 to 12/31/14 was a

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The cash realizable value is the amount of receivables that the company expects to collect. At the beginning of the year, the balance in accounts receivable was not given; therefore, we cannot determine the exact cash realizable value at the beginning of the year.
The cash realizable value at the end of the year can be calculated as follows:

Beginning balance + Sales on account - Collections on account - Write-offs - Estimated uncollectible accounts = Ending balance

We know the following:

Sales on account = €290,000
Collections on account = €172,000
Write-offs = €16,000
Estimated uncollectible accounts = €118,000

Therefore, the ending balance can be calculated as follows:

Ending balance = Beginning balance + €290,000 - €172,000 - €16,000 - €118,000
Ending balance = Beginning balance - €16,000 + €290,000 - €172,000 - €118,000
Ending balance = Beginning balance - €16,000 - €118,000 + €290,000 - €172,000
Ending balance = Beginning balance - €16,000 + €172,000

Since we do not know the beginning balance, we cannot calculate the exact change in the cash realizable value. However, we can see that the ending balance is €16,000 more than the collections on account. This means that the company expects to collect an additional €16,000 from outstanding receivables. Therefore, the change in the cash realizable value from the balance at 12/31/13 to 12/31/14 was a €74,000 increase (choice C).

Using the Following Information: During 2014, Sales on Account