Question

During the current year, a company had sales on account of $264,000, cash sales of $108,000, and collections on account of $168,000. In addition, the company collected $2,900 from a customer whose account the company had written off as uncollectible in the prior year. As a result of these transactions, the current year's change in the accounts receivable balance is a Group of answer choices

Answer 1

As a result of these transactions, the current year's change in the accounts receivable balance is an increase of $96,000.

What is the accounts receivable balance?

The accounts receivable balance is the difference between credit sales and cash collections on account, including other relevant adjustments.

The accounts receivable balance is one of the items of the current assets in the balance sheet.

Data and Calculations:

Credit Sales = $264,000

Cash Sales = $108,000

Collections on account = $168,000

Change in accounts receivable balance = $96,000 ($264,000 - $168,000)

Thus, as a result of these transactions, the current year's change in the accounts receivable balance is an increase of $96,000.

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