Using the Following Information: During 2018, Sales on Account

question 141

Multiple Choice

Using the following information: During 2018, sales on account were $145,000 and collections on account were $100,000. Also during 2018, the company wrote off $4,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40,000. The change in the cash realizable value from the balance at 12/31/17 to 12/31/18 was a

• A) $36,000 increase.
• B) $41,000 increase.
• C) $44,000 increase.
• D) $45,000 increase.

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Definitions:

Felsic

Refers to igneous rocks that are rich in lighter elements like silicon, oxygen, aluminum, sodium, and potassium.

Pyroclastic Flow

A swiftly flowing stream of heated gas and volcanic substances that descends a volcano's slope when there's a violent eruption.

Fluid Lava

Molten rock material expelled by a volcano during an eruption, characterized by its low viscosity which allows it to flow easily.

Eruption Column

A tall, dense column of ash, gas, and volcanic debris ejected into the atmosphere during an explosive volcanic eruption.