1. An aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $2,400 credit balance, the adjustment to record bad debts for the period will require a:

A). increase to Bad Debt Expense and increase to the Allowance for Doubtful Accounts for $9,000.

B). decrease to Accounts Receivable and an increase to Allowance for Doubtful Accounts for $6,600.

C). increase to Bad Debts Expense and increase to the Allowance for Doubtful Accounts for $6,600.

D). increase in Bad Debts Expense and decrease in Accounts Receivable for $6,600.

2. Right Company has $250,000 of accounts receivable, a normal negative credit balance of $30,000 in the allowance for doubtful accounts, and bad debt expense for the year of $50,000. You have just received notice that a customer of yours with an account receivable balance of $2,000 has gone bankrupt and will not make any future payments. What is the net realizable value of the receivables before and after, respectively, of the write-off of this account?

A). $220,000; $218,000

B). $200,000; $198,000

C). $200,000; $200,000

D). $220,000; $220,000