During 2017 Wheeler Inc

question 134

Multiple Choice

During 2017 Wheeler Inc. had sales on account of $792,000, cash sales of $324,000, and collections on account of $504,000. In addition, they collected $8,700 which had been written off as uncollectible in 2016. As a result of these transactions the change in the accounts receivable indicates a

• A)$603,300 increase.
• B)$288,000 increase.
• C)$279,300 increase.
• D)$612,000 increase.

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Definitions:

Dollar Terms

The practice of expressing or measuring financial transactions, values, or performance in units of the U.S. dollar.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Markdown

A reduction from the original or listed price of an item, often used as a strategy to increase sales or clear out inventory.

Timing

The selection of the most appropriate moment to execute an action in order to maximize its effectiveness or success.