What is the balance in the allowance for doubtful account

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Obama & Michelle Inc writes off receivable totalling $8,900 during the period. The allowance for doubtful accounts (AFDA) at the beginning of the period is 7,000 credit. Near the end of the period, before the financial statement are prepared, a customer whose receivable balance had previously been written off, sent in a cheque for 700

Problem 1: What is the balance in the Allowance for Doubtful Account before the AFDA is updated for the current period uncollectable

Option 1: 1,200 credit

Option 2: 15,200 debit

Option 3: 1,200 debit

Option 4: 2,600 debit

Option 5: 15,200 credit

Reference no: EM132962614

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