Accounts receivable $1,400,000 (120,000) 1,280,000 Allowance for doubtful accounts (credit) During 2017 sales on account were $390,000 and collections on account were $230,000. Also, during 2017 the company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $144,000. The change in the cash realizable value from the balance at 12/31/16 to 12/31/17 was a. $136,000 increase. b. $160,000 increase. c. $114,000 increase. d. $138,000 increase. (6) Young Company lends Dobson industries $40,000 on August 1, 2017, accepting a 9-month, 9% interest note. If Young accrued interest at its December 31, 2017 year-end, what entry must it make to record the collection of the note and interest at its maturity date? a. Cash 42,700 Notes Receivable Interest Revenue 40,000 2,700 b. Cash 42,700 Notes Receivable 42,700 40,000 1,500 1,200 c. Notes Receivable Interest Receivable Interest Revenue Cash 42,700 d. Cash 42,700 40,000 1,500 1,200 Which one of the following is not a principle of sound accounts receivable management? Notes Receivable Interest Receivable Interest Revenue (7)