Exercise 2 On July 31, 2014, the company's year end, Diamond Drills had account balances as follows: Accounts receivable Allowance for doubtful accounts (credit balance).. $340,000 5,200 The credit department has determined that of the total accounts receivable, $5,900 should be written off. Diamond estimates 95% of remaining accounts receivable will be collected. Instructions a. Prepare the entry to write off the accounts as determined by the credit department. b. Calculate the net realizable value of accounts receivable. c. Prepare the entry required to adjust accounts receivable to their net realizable balance.