On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $75,200 and $3,800, respectively. During the year Kincaid reported $211,000 of credit sales. Kincaid wrote off $2,050 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $264,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

The net realizable value of receivables appearing on Kincaid's Year 2 balance sheet will amount to:

• $19,850.

• $17,740.

• $15,990.

• $21,900.