Using the Following Information - During 2016 Sales on Account Were $145000 and Collections

question 228

Multiple Choice

Using the following information: $$\begin{array} { l r } &\underline { 12 / 31 / 15 } \\\text { Accounts receivable } & \$ 525,000 \\\text { Allowance } &\underline { ( 40,000 ) } \\\text { Cash realizable value } & \underline { \$ 485,000 }\\\end{array}$$

- During 2016 sales on account were $145000 and collections on account were $100000. Also during 2016 the company wrote off $5000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $45000. The change in the cash realizable value from the balance at 12/31/15 to 12/31/16 was a

• A) $35000 increase.
• B) $41000 increase.
• C) $30000 increase.
• D) $45000 increase.

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Definitions:

Code Match

The process of pairing or aligning codes, often in software or data management, to ensure consistency or compatibility.

Placeholders

Symbols or texts temporarily used in place of final content, indicating where and how data will fit into a format.

Seventh Character

In coding systems like ICD-10, an additional character used to provide further information about the timeline or episode of care for a condition.

Code Category

A classification or grouping based on shared characteristics or rules, often used in data sorting or medical billing.