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Using the Following Information: During 2010, Sales on Account

Question 3

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Using the following information: Using the following information:   During 2010, sales on account were $145,000 and collections on account were $86,000. Also during 2010, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $54,000. The change in the cash realizable value from the balance at 12/31/09 to 12/31/10 was a A)  $50,000 increase. B)  $59,000 increase. C)  $42,000 increase. D)  $51,000 increase. During 2010, sales on account were $145,000 and collections on account were $86,000. Also during 2010, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $54,000.
The change in the cash realizable value from the balance at 12/31/09 to 12/31/10 was a


A) $50,000 increase.
B) $59,000 increase.
C) $42,000 increase.
D) $51,000 increase.

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