Question

During 2017 Sheridan Company had sales on account of $701000, cash sales of $316000, and collections on account of $520000. In addition, they collected $8300 which had been written off as uncollectible in 2016. As a result of these transactions the change in the accounts receivable indicates a

Answer 1

the Accounts Receivable account will increase by $181,000 this year

Step-by-step explanation:

sales on account = $701000

cash sales = $316000

collections on account = $520000

collected $8300 which had been written off

The transactions that affect the accounts receivable account for the current year are:

1. sales on account
2. collections on account

this year accounts receivable will change = $701,000 - $520000 = $181,000