Bay Company began using the allowance method in 2014. On January 1, 2014, Bay had a $3,600 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2014, Bay provided $31,000 of service on account. The company collected $24,000 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account. The net realizable value of Bay's accounts receivable as of December 31, 2014 was

$10,600.

$620.

$9,980.

$5,300.