Question

Bulldog, Inc. shows the following information on its balance sheet for the years ending December 31, 2018 and 2017. Dollar amounts are in thousands of dollars.

  2018    2017

Accounts receivable, less allowance for doubtful accounts $ 8,960 $ 8,350

of $448 in 2018 and $417 in 2017

The financial reporting suggests that the managers believe that their customers' ability to pay has

	a.	increased
	b.	decreased
	c.	remained the same

Answer 1

Solution:		2,018	2,017	Difference (2017-2018)
	Account Receivable	$                       8,960	$                       8,350	$                      -610
	Less: Allowance for Doubtfull Accounts	$                          448	$                          417	$                        -31
	Net Receivable	$                       8,512	$                       7,933	$                      -579
	By analysing the above data we come to know that account receivable is increases by $ 610 in the year 2018
	Allowance for doubtfull account has increases by $ 31 in the year 2018
	Above both increases is not a good sign for account receivable and it shows the customer's ability is decreased.
Answer = Option B =Decreased