Using the following information:

12/31/14Accounts receivable$525,000Allowance(35,000)Cash realizable value$490,000

During 2015, sales on account were $145,000 and collections on account were $100,000. Also during 2015, the company wrote off $4,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40,000.

The change in the cash realizable value from the balance at 12/31/14 to 12/31/15 was a

$41,000 increase.

$36,000 increase.

$44,000 increase.

$45,000 increase.