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The following information relates to the beginning of the year: Accounts receivable, $245,000 Allowance for doubtful accounts
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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
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