Using the Following Information: During 2010, Sales on Account

question 3

Multiple Choice

Using the following information: During 2010, sales on account were $145,000 and collections on account were $86,000. Also during 2010, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $54,000.
The change in the cash realizable value from the balance at 12/31/09 to 12/31/10 was a

• A) $50,000 increase.
• B) $59,000 increase.
• C) $42,000 increase.
• D) $51,000 increase.

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Definitions:

Familiarity

A psychological concept referring to the level of recognition and comfort an individual has with a particular subject, object, or person.

Primacy Effect

The tendency to remember and give more weight to information that we encounter first in a sequence.

Physical Attractiveness

A perception of beauty or aesthetic appeal of an individual, significantly influenced by societal standards and personal preferences.

Mate Selection

The process by which individuals choose a partner based on a variety of factors including personal preferences, cultural influences, and social norms.