Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $3,000

Question:

Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $3,000 balance in the account and a zero balance in the Allowance for Doubtful Accounts account. During 2014, Bay provided $25,000 of service on account. The company collected $21,000 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.
The net realizable value of Bay's as of December 31, 2014 was
Select one:
A. $7,000
B. $3,500.
C. $6,500.
D. $500
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...