When an account receivable that has previously been written off is later paid, under the allowance method the correct accounting is to

A.Dr. A/R Cr. Allowance for Doubtful Accounts Dr. Cash Cr. A/R

B.Dr. A/R Cr. Cash Dr. A/R Cr. Allowance for Doubtful Accounts

C.Dr. Cash Cr. A/R

D.Dr. A/R Cr. Allowance for Doubtful Accounts

Bailey Inc.'s books revealed the following data for 2020 after all adjustments were made:

Cash sales	$825,000
Sales returns (on credit sales)	35,000
Allowance for doubtful accounts (credit balance)	3,800
Credit sales	575,000
Accounts receivable	168,000

Bailey estimates bad debt expense based on 2% of net credit sales. The net carrying value of accounts receivable before the bad debt expense is recognized is

$156,500.

$164,200.

$168,000.

$171,800.