Answer:
C $26,200
Explanation:
Allowance for Doubtful Accounts is an contra account receivables account. It is adjusted in the account receivable balance to show the net receivable on the balance sheet. The write off entry is made to transfer deduct the balance of account receivable which is now uncollectible from the customers.
As per given date
January 1, year 1
Account receivable = $29,700
Allowance for Doubtful Accounts = $3,500
On January 15, Year 1 a write off is made as follow
Dr. Allowance for Doubtful Accounts $1,030
Cr. Account receivable $1,030
These balance are deducted from the account receivable balance and Allowance for Doubtful Accounts balance.
Account receivable = $29,700 - $1,030 = $28,670
Allowance for Doubtful Accounts = $3,500 - $1,030 = $2,470
Realizable Value of Account receivable = $28,670 - $2,470 = $26,200
