Account nameAccount balanceAccounts receivable$32,500Allowance for doubtful accounts$2,400Net realizable value$30,100

The following business activities regarding Blackwood's operations occurred during 2021:

1.Sales for the year totalled $625,000 of which 24% were cash sales and the rest (76%) was on account, terms n/45. (Ignore cost of goods sold and inventory.)

2.Cash collections on accounts receivable were $448,000 during the year.

3.Two of Blackwood's customers' accounts were determined to be uncollectable. Blackwood wrote off those accounts, which totalled $3,500.

4.In November, 2021, a cheque for $2,100 was received from a customer whose account was previously written off.

5.Blackwood estimates its uncollectible accounts receivable at 7.5% of ending accounts receivable.

The ending balance in the Allowance for Doubtful Accounts, after all the entries are made, would be:

a)

$4,200

b)

$2,400

c)

$1,000

d)

$4,725

e)

$5,275