The Following Information Is Related to December 31, 2021 Balances

question 47

Multiple Choice

The following information is related to December 31, 2021 balances. During 2022, sales on account were $390,000 and collections on account were $230,000.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 12/31/21 to 12/31/22 was

• A)$136,000 increase.
• B)$160,000 increase.
• C)$114,000 increase.
• D)$138,000 increase.

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Definitions:

Biological Therapy

The use of physical and chemical procedures to help people overcome psychological problems.

Cognitive Therapy

A form of psychotherapy that emphasizes the important role of thinking in how we feel and what we do; it is focused on changing distorted thoughts to improve emotional response and behavior.

Catharsis

The reliving of past repressed feelings in order to settle internal conflicts and overcome problems.

Repression

A psychological defense mechanism where unwanted thoughts and desires are unconsciously pushed out of conscious thought.