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:

Weber Test

A quick screening test for hearing that involves placing a tuning fork in the middle of the forehead to assess bone conduction of sound.

Vibrating Tuning Fork

A tool that produces a fixed pitch when struck, used in various applications like music for tuning instruments and in medicine for assessing hearing and vibratory sensations.

Hearing Loss

The partial or total inability to hear sounds in one or both ears.

Jaeger System

A chart used for testing visual acuity, especially for reading and near vision.