Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / During 2014, ABC Inc
During 2014, ABC Inc. had sales on account of $500,000, cash sales of $319,000, and collections on account of $216,000. In addition, they collected $6,900 which had been written off as uncollectible in 2013. As a result of these transactions the change in the accounts receivable indicates a
$603,000 increase
$596,100 increase
$284,000 increase
$277,100 increase
Computation of Change in Accounts Receivable:
Change in Accounts Receivable = Sales on Account - Collection on Account
= $500,000 - $216,000
= $284,000 increase
So, the correct option is 3rd "$284,000 increase".
