The Following Information Is Related to December 31, 2016 Balances

question 196

Multiple Choice

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.

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Definitions:

Targeting

The process of identifying and focusing on specific segments of the market that a company views as potential customers for its products or services.

Positioning

In marketing, positioning refers to the technique by which marketers try to create an image or identity for a product, brand, or company in the perception of the target market.

Consultative Buying Centers

Groups within organizations that use a collaborative approach to purchasing, where members consult each other and consider different perspectives to make informed decisions.

Solicit Input

The act of seeking advice, opinions, or feedback from others to inform a decision or improve an outcome.