Using the following information: During 2010, sales on account were $145,000 and collections on account were $86,000. Also during 2010, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $54,000.
The change in the cash realizable value from the balance at 12/31/09 to 12/31/10 was a
A) $50,000 increase.
B) $59,000 increase.
C) $42,000 increase.
D) $51,000 increase.

Question

Using the following information:  During 2010, sales on account were $145,000 and collections on account were $86,000. Also during 2010, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $54,000.
The change in the cash realizable value from the balance at 12/31/09 to 12/31/10 was a
A) $50,000 increase. 
B) $59,000 increase. 
C) $42,000 increase. 
D) $51,000 increase.

Quizplus · Accepted Answer

The Answer of Using the following information:  During 2010, sales on account were $145,000 and collections on account were $86,000. Also during 2010, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $54,000.
The change in the cash realizable value from the balance at 12/31/09 to 12/31/10 was a
A) $50,000 increase. 
B) $59,000 increase. 
C) $42,000 increase. 
D) $51,000 increase.

Using the Following Information: During 2010, Sales on Account