Using the following information: 12/31/20 Accounts receivable $520000 Allowance (35100) Cash realizable value $484900 During 2021, sales on account were $144600 and collections on account were $99300. Also during 2021, the company wrote off $4040 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40300. The change in the cash realizable value from the balance at 12/31/20 to 12/31/21 was a $44340 increase. $45300 increase. $41260 increase. $40100 increase.
Using the following information: 12/31/20 Accounts receivable $520000 Allowance (35100) Cash realizable value $484900 During 2021, sales on account were $144600 and collections on account were $99300. Also during 2021, the company wrote off $4040 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40300. The change in the cash realizable value from the balance at 12/31/20 to 12/31/21 was a $44340 increase. $45300 increase. $41260 increase. $40100 increase.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...
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Question
Give me correct answer with explanation.vk
![Using the following information:
12/31/20
Accounts receivable
$520000
Allowance
(35100)
Cash realizable value
$484900
During 2021, sales on account were $144600 and collections on account were $99300. Also during 2021, the company wrote off
$4040 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts
should be estimated at $40300.
The change in the cash realizable value from the balance at 12/31/20 to 12/31/21 was a
$44340 increase.
$45300 increase.
$41260 increase.
$40100 increase.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59e42662-05ec-414e-a658-ce5f7fcfe57f%2Fcfe27dad-c66f-4c37-b9df-01799f5a8806%2Fo69gow7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Using the following information:
12/31/20
Accounts receivable
$520000
Allowance
(35100)
Cash realizable value
$484900
During 2021, sales on account were $144600 and collections on account were $99300. Also during 2021, the company wrote off
$4040 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts
should be estimated at $40300.
The change in the cash realizable value from the balance at 12/31/20 to 12/31/21 was a
$44340 increase.
$45300 increase.
$41260 increase.
$40100 increase.
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