Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
On January 1,2016,Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500,respectively.During the year Kincaid reported $72,500 of credit sales.Kincaid wrote off $550 of receivables as uncollectible in 2016.Cash collections of receivables amounted to $74,550.Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
-The net realizable value of receivables appearing on Kincaid's 2016 balance sheet will amount to:

A) $29,075.
B) $27,725.
C) $28,950.
D) $28,400.