2. Right Company has $250,000 of accounts receivable, a normal negative credit balance of $30,000...

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Accounting

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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