1. The following information is related to December 31, 2013 balances.

During 2014 sales on account were $580,000 and collections on account were $344,000. Also during 2014 the company wrote off $32,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $216,000. The change in the cash realizable value from the balance at 12/31/13 to 12/31/14 was a?

a) $200,000 increase.

b) $236,000 increase.

c) $168,000 increase.

d) $204,000 increase.

2. A company sells $900,000 of accounts receivable to a factor for cash less a 2% service charge. The entry to record the sale should not include a?

a)	debit to Interest Expense for $18,000

b) debit to cash for $882,000

c) debit to service charge expense for $18,000

d) credit to accounts receivable for $900,000

3.

Selling accounts receivables to factors and allowing credit terms such as 2/10, n/30

a)	represent common business practices.

b)	represent ways to accelerate receivables collections.

c)	result in collections that are less than the gross accounts receivable.

d)	All of these answer choices are correct.