What the net carrying value of accounts receivable before

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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 1 68,000

Bailey estimates bad debt expense based on 2% of net credit sales.

Problem 1: The net carrying value of accounts receivable before the bad debt expense is recognized is

A) $156,500.

B) $164,200.

C) $168,000.

D) $171,800.

Reference no: EM132953372

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