During 2016 Belfour Inc. had sales on account of $189000 cash sales of $78000 and collections on account of $162000. In addition they collected $1275 which had been written off as uncollectible in 2015. As a result of these transactions the change in the accounts receivable balance indicates a

A) $25725 increase.
B) $27000 increase.
C) $103725 increase.
D) $105000 increase.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, recognized as an asset.

Cash Sales

Transactions where customers pay for goods or services at the time of purchase using cash.

Credit Sales

Transactions where the payment is deferred to a future date, allowing the buyer to receive goods or services before payment is made.