The Ritchie Company gathered the following information pertaining to its year ended December 31, 2019, prior to any adjustments:

Net credit sales for the year	$780,000
Accounts receivable, Dec. 31, 2019	170,000
Allowance for doubtful accounts, December 31, 2019	3,200	Cr.

Aging of accounts receivable at December 31, 2019:

1-30 days	$95,000
31-60 days	38,000
61-90 days	23,000
Over 90 days	14,000
Total	$170,000

Choose the best answer

Refer to Table 9-5. Assume Ritchie uses the aging-of-accounts-receivable method for estimating uncollectible accounts. Ritchie estimates that uncollectible accounts will be aged as follows: 2% for 1-30 days; 4% for 31-60 days; 10% for 61-90 days; and 25% for over 90 days. The balance in allowance for doubtful accounts after the adjusting entry for uncollectible accounts will be:

A) $12,280

B) $6,000

C) $5,880

D) $9,220

Choose the best answer

Refer to Table 9-5. Assume Ritchie uses the percent-of-sales method for estimating uncollectible accounts. Ritchie estimates that bad-debt expense will be 1.3% of net credit sales. After the adjustment for uncollectible accounts is made, the net realizable value of accounts receivable will be:

A) $156,660

B) $170,000

C) $159,860

D) $163,060