Answer: $91,250 increase
Calculations:
Accounts receivable, Beginning | $245,000 |
Credit sales | $1,100,000 |
Collections from customers | ($990,000) |
Written off | ($14,000) |
Accounts receivable, Ending | $341,000 |
Cash realizable value change during the current year:
Beginning | Ending | Increase(Decrease) | |
Accounts receivable | $245,000 | $341,000 | |
Less: Allowance for doubtful accounts | ($12,250) | ($17,000) | |
Net realizable value | $232,750 | $324,000 | $91,250 |
The following information relates to the beginning of the year: Accounts receivable, $245,000 Allowance for doubtful...
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