At the beginning of Year 3 Omega Company had a $52,000 balance in its accounts receivable account and a $1,400 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events. (1) Earned $220,000 of revenue on account. (2) Collected $230,000 cash from accounts receivable. (3) Wrote off $1,000 of accounts receivable as uncollectible. Omega estimates uncollectible accounts to be 4% of receivables. Based on this information, the December 31, Year 3 balance in the accounts is:

Multiple Choice

A. $41,000.

B. $40,000.

C. $52,000.

D. None of these choices are correct.