Answer:
$466400 increase.
Explanation:
During 2017,
Sales on account $373,000
Collections on account $212,000
Accounts receivable increased $161,000
The company wrote off $20,600 in uncollectible accounts, Accounts receivable decreased $20,600
Accounts receivable balance at the end of 2017:
$1,590,000 + $161,000 - $20,600 = $1,730,400
The cash realizable value is the amount of money the company expects to receive from your accounts receivable after deducting the uncollectable amount.
At the end of 2017,
An analysis of outstanding receivable accounts indicated that bad debts should be estimated at $144,000. So, the uncollectable amount was $144,000
The cash realizable value = $1,730,400 - $144,000 = $1,586,400
From at 12/31/16 to 12/31/17, the balance of The cash realizable value increased: $1,586,400 - $1,120,000 = $466,400
