Final answer:
The change in the accounts receivable balance for Alfred Inc. during 2012 indicates an increase of $49,450, which is calculated by considering sales on account, collections on account, and recovery of previously written-off amounts.
Step-by-step explanation:
During 2012, Alfred Inc. had sales on account of $132,000, cash sales of $54,000, and collections on account of $84,000. In addition, they collected $1,450 which had been written off as uncollectible in 2011. To calculate the change in the accounts receivable balance, we start with the total sales on account (since cash sales do not affect accounts receivable) and then subtract the collections on account.
Total sales on account: $132,000
Collections on account: $84,000
Change in accounts receivable: $132,000 - $84,000 = $48,000
However, because $1,450 that was previously written off as uncollectible has been collected, this also affects the accounts receivable balance. This amount should be added back to the change in receivables:
Adjusted change in accounts receivable: $48,000 + $1,450 = $49,450
Therefore, the change in the accounts receivable balance indicates an increase of $49,450 as a result of these transactions during 2012.