During 2014, Hitchcock Inc. had sales on account of $176,000, cash sales of $72,000, and collections on account of $112,000. In addition, they collected $1,950 which had been written off as uncollectible in 2013. As a result of these transactions, the change in the accounts receivable balance indicates a

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The change in accounts receivable is calculated as sales on account ($176,000) minus collections on account ($112,000), resulting in a $64,000 increase. The collection of $1,950 written off does not affect the accounts receivable balance.