2.) Rainbow Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the companys fiscal year-end. The 2020 balance sheet disclosed the following:

Receivables, net of allowance for uncollectible accounts of $50,000

$430,000 During 2021, credit sales were $1,800,000, cash collections from customers $1,920,000, and $60,000 in accounts receivable were written off. In addition, $5,000 was collected from a customer whose account was written off in 2020. The balance of accounts receivable (gross) at the end of 2021 should be:

A. 300,000 B. 305,000 C. 295,000 D. 360,000