Use the Following Information for Questions:
Armada Inc Armada Estimates Bad Debt Expense Based on 2% of Net

Use the following information for questions:
Armada Inc.'s books revealed the following data for 2011 after all adjustments were made: $\begin{array}{lr}\text { Cash sales } & \$ 825,000 \\\text { Sales returns (on credit sales) } & 35,000 \\\text { Allowance for doubtful accounts (credit balance) } & 3,800 \\\text { Credit sales } & 575,000 \\\text { Accounts receivable } & 168,000\end{array}$ Armada estimates bad debt expense based on 2% of net credit sales.
-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