If the December 31, 2014, balance of accounts receivable is lower than the January 1, 2014, balance, then the amount of cash collections will be more than the sales on account for the year.

Question

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If accounts receivable decreased over the year, it indicates that more cash was collected from customers than the amount of sales made on account, leading to a net reduction in the accounts receivable balance.

If the December 31, 2014, Balance of Accounts Receivable Is