1. Allowance for Doubtful Accounts has a normal negative unadjusted balance of $800 at the end of the year, and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. Which of the following records the proper adjustment for doubtful accounts?

A. Increase Bad Debts Expense $800; increase the Allowance account by $800.

B. Increase Bad Debts Expense $15,000; increase the Allowance account $15,000.

C. Increase Bad Debts Expense $14,200; increase the Allowance account $14,200.

D. Increase Bad Debts Expense $15,800; increase the Allowance account $15,800.

2. After the accounts are adjusted at the end of the fiscal year, Accounts Receivable has a balance of $430,000, the Allowance for Doubtful Accounts has a balance of $30,000 and bad debts expense has a balance of $45,000. What is the cash (or net) realizable value of the receivables?

A. $355,000

B. $460,000

C. $385,000

D. $400,000