At 1 January, Davidson Services Has the Following Balances

Multiple Choice

At 1 January, Davidson Services has the following balances: During the year, Davidson had $104 000 of credit sales, collections of $100 000, and write- offs of $1 400.
Davidson records Bad debts expense at the end of the year using the percentage- of- sales method, and applies a rate of 1.1%, based on past history.
Prior to the year- end entry to adjust the Bad debts expense, what is the balance in Accounts receivable?

A) $13 000
B) $11 600
C) $2 600
D) $4 000