2. Right Company has $250,000 of accounts receivable, a normal negative credit balance of $30,000...
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2. Right Company has $250,000 of accounts receivable, a normal negative credit balance of $30,000 in the allowance for doubtful accounts, and bad debt expense for the year of $50,000. You have just received notice that a customer of yours with an account receivable balance of $2,000 has gone bankrupt and willnot make any future payments. What is the net realizable value of the receivables before and after, respectively, of the write-off of this account?
A). $220,000; $218,000
B). $200,000; $198,000
C). $200,000; $200,000
D). $220,000; $220,000
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