Question

During 2017 Cheyenne Corp. had sales on account of $595000, cash sales of $249000, and collections on account of $346000. In addition, they collected $6900 which had been written off as uncollectible in 2016. As a result of these transactions the change in the accounts receivable balance indicates a:__________

a) $491100 increase.
b) $249000 increase.
c) $498000 increase.
d) $242100 increase.

Answer 1

Answer: B) $249000 increase.

Explanation: from the above question, sales on account is $595,000, cash sales is $249,000 and collections on account is $346,000. The change in the accounts receivable balance is

$595,000 - $346,000 = $249,000