Smart Art Is a New Business

Smart Art is a new business.During its first year of operations,credit sales were $45,000 and collections from credit sales were $31,000.One account for $600 was written off.Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible.What is the balance of Accounts Receivable at the end of the first year?

A) $14,000
B) $12,050
C) $13,400
D) $12,650