The Following Information Is Related to December 31, 2016 Balances

The following information is related to December 31, 2016 balances. During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. The change in the cash realizable value from the balance at 12/31/16 to 12/31/17 was

A) 136,000 increase.
B) $160,000 increase.
C) $114,000 increase.
D) $138,000 increase.

Correct Answer:

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