On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $72,400 and $3,200, respectively. During Year 2, Kincaid reported $197,000 of credit sales, wrote off $1,850 of receivables as uncollectible, and collected cash from receivables amounting to $239,900. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

What is the net realizable value of receivables that will be reported on Kincaid's Year 2 balance sheet?

A) $24,330

B) $29,500

C) $25,680

D) $27,650