Question

During 2022 Swifty Corporation had sales on account of $765000, cash sales of $312000, and collections on account of $512000. In addition, they collected $8900 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable indicates a $244100 increase. $568000 increase. $565000 increase. $253000 increase.

Answer 1

$253,000 increase

Step-by-step explanation:

With regards to the above, there would be an increase in transaction. See computation below;

Given that;

Sales on account = $765,000

Collections on account = $512,000

Then,

The change in account receivables would be;

= Sales on account - Collections on account

= $765,000 - $512,000

= $253,000 increase.