Using the following information: Accounts receivable Allowance for doubtful accounts Cash realizable value 12/31/19 €2,100,000 (180,000) €1.920,000 During 2020, sales on account were €580,000 and collections on account were €344,000. Also during 2020, the company wrote off €32,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €236,000. The change in the cash realizable value from the balance at 12/31/19 to 12/31/20 was a O a. €148,000 increase. O b. €236,000 increase O c. €268,000 increase.
Using the following information: Accounts receivable Allowance for doubtful accounts Cash realizable value 12/31/19 €2,100,000 (180,000) €1.920,000 During 2020, sales on account were €580,000 and collections on account were €344,000. Also during 2020, the company wrote off €32,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €236,000. The change in the cash realizable value from the balance at 12/31/19 to 12/31/20 was a O a. €148,000 increase. O b. €236,000 increase O c. €268,000 increase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Using the following information:
Accounts receivable
Allowance for doubtful accounts
Cash realizable value
12/31/19
€2,100,000
_(180,000)
€1,920,000
During 2020, sales on account were €580,000 and collections on account were €344,000. Also during 2020, the
company wrote off €32,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end
indicated that uncollectible accounts should be estimated at €236,000.
The change in the cash realizable value from the balance at 12/31/19 to 12/31/20 was a
O a. €148,000 increase.
O b. €236,000 increase
O c. €268,000 increase.
Transcribed Image Text:Using the following information:
Accounts receivable
Allowance for doubtful accounts
Cash realizable value
12/31/19
O a. €236,000
O b. €88,000.
O c. €56,000.
€2,100,000
(180,000)
€1,920,000
During 2020, sales on account were €580,000 and collections on account were €344,000. Also during 2020, the
company wrote off €32,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end
indicated that uncollectible accounts should be estimated at €236,000.
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