Use the following information to answer questions #54-55

Your business uses the allowance method to account for uncollectible receivables. At the beginning of

the year, the balance in accounts receivable was $10,000 and the balance in the allowance for doubtful

accounts (AFDA) was $1,800. During the year the business had sales on account of $25,000 and wrote

off a $2,000 uncollectible account. The company estimates that 7% of their receivables wont be

collectible.

54. What is the uncollectible accounts (bad debt) expense for the year?

a.$2,510

b. $2,310

c.$2,110

d. $510

55. What is the net realizable value of accounts receivable at the end of the year?

a.$30,890

b. $33,000

c.$30,490

d. $30,690

PLEASE EXPLAIN