Use the information from Question 6 to answer Question 8 please! Answer C ($420,750) is not correct for Question 8, and answer D ($503,000) is not correct for Question 6.

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QUESTION 8 Assume the beginning balance on January 1, 2019 in the Allowance for Doubtful Accounts is $15,000. If the company estimates its bad debt as 2.5% of credit sales determine Net Realizable Value of Accounts Receivable on December 31, 2019. A. $418,750 B. $352,750 C. $420,750 D. $421,750 E. $419,150 Question 6 Use the following information to answer the next 5 questions: On December 31, 2019 a company's Accounts Receivable balance was $440,000. During the year the company recorded credit sales of $770,000 and cash collections of $820,000. In addition, the company wrote off $16,000 of accounts as uncollectible and reinstated and collected an accounts receivable that was previously written off that totaled $3,000. The company uses the allowance method to account for its receivables. Determine the balance in the accounts receivable account on January 1, 2019: Selected Answer D. $503,000