Question

During 2017 Sheffield Corp. had sales on account of $709000, cash sales of $307000, and collections on account of $508000. In addition, they collected $9400 which had been written off as uncollectible in 2016. As a result of these transactions the change in the accounts receivable indicates a:_________A. $191600 increase.B. $508000 increase.C. $516000 increase.D. $201000 increase

Answer 1

D. $201000 increase

Step-by-step explanation:

The computation of the change in accounts receivable is shown below:

= Sales on account - collected amount

= $709,000 - $508,000

= $201,000 increase

The cash sales does not affect the account receivable account and the written-off uncollectible amount is also not affected the account receivable account. Thus, we do not consider these both items in the computation part