The following information is related to December 31, 2021 balances. During 2022, sales on account were $870,000 and collections on account were $516,000.The company wrote off $48,000 in uncollectible accounts.An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $324,000.The change in the cash realizable value from the balance at 12/31/21 to 12/31/22 was a
A)$300,000 increase.
B)$354,000 increase.
C)$252,000 increase.
D)$306,000 increase.

Question

The following information is related to December 31, 2021 balances.  During 2022, sales on account were $870,000 and collections on account were $516,000.The company wrote off $48,000 in uncollectible accounts.An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $324,000.The change in the cash realizable value from the balance at 12/31/21 to 12/31/22 was a
A)$300,000 increase. 
B)$354,000 increase. 
C)$252,000 increase. 
D)$306,000 increase.

Quizplus · Accepted Answer

The Answer of The following information is related to December 31, 2021 balances.  During 2022, sales on account were $870,000 and collections on account were $516,000.The company wrote off $48,000 in uncollectible accounts.An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $324,000.The change in the cash realizable value from the balance at 12/31/21 to 12/31/22 was a
A)$300,000 increase. 
B)$354,000 increase. 
C)$252,000 increase. 
D)$306,000 increase.

The Following Information Is Related to December 31, 2021 Balances