Uncollectible Accounts

Sampson Company had accounts receivable of $140,000 and an allowance for doubtful accounts of $5,400 just before writing off as worthless an account receivable from Cargo Industries of $800. Based on this information, what would be the net realizable value of accounts receivable before and after the write-off?

Select one:

a. Before After $139,200 $139,200

b. Before After $140,000 $134,600

c. Before After $134,600 $134,600

d. Before After $134,600 $133,800