On January 1, 2016, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,000 and $2,900, respectively. During the year Kincaid reported $190,000 of credit sales. Kincaid wrote off $1,750 of receivables as uncollectible in 2016. Cash collections of receivables amounted to $227,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

1. The amount of uncollectible accounts expense recognized in the 2016 income statement will be:

A. $1,900

B. $710

C. $2,277

D. $1,750

2. The net realizable value of recievables appearing on Kincaid's 2016 balance sheet will amount to:

A. $29,650

B. $28,500

C. $33,300

D. $31,550