Using the Following Information: During 2018, Sales on Account

Multiple Choice

Using the following information: During 2018, sales on account were $145,000 and collections on account were $100,000. Also during 2018, 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 12/31/17 to 12/31/18 was a

A) $36,000 increase.
B) $41,000 increase.
C) $44,000 increase.
D) $45,000 increase.