12/31/06accounts receivable $525,000allowance (45,000)cash realizable value 480,000during 2007 sales on account were $145,000 and collections on account were $86,000. also, during 2007 the company wrote off $8,000 in uncollectible accounts. an analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $54,000.48. the change in the cash realizable value from the balance at 12/31/06 to 12/31/07 wasa. $50,000 increaseb. $59,000 increasec. $42,000 increased. $51,000 increase

c. $42,000 increase

Explanation:

The computation of the change in cash realizable value is shown below:

= Adjusted cash balance - Cash realizable value

where,

Adjusted cash balance = Ending balance of accounts receivable + sales on account - collections - written off amount - bad debt expense

= $525,000 + $145,000 - $86,000 - $8,000 - $54,000

= $522,000

And, the cash realizable value is $480,000

Now put these values to the above formula

So, the value would be equal to

= $522,000 - $480,000

= $42,000 increase

$2.00 for three shots.