1. At the beginning of Year 3 Omega Company had a $50,000 balance in its accounts receivable account and a $2,000 balance in allowance for doubtful accounts. During Year 3 Omega experienced the following events.

(1) Omega earned $200,000 of revenue on account. (2) Collected $150,000 cash from accounts receivable. (3) Wrote-off $1,000 of accounts receivable as uncollectible.

Omega estimates uncollectible accounts to be 10% of receivables. Based on this information, the amount of net realizable value of receivables shown on the Year 3 balance sheet is

a. $89,100

b. $90,000

c. $89,000

d. $90,100

e. None of the Above