Kentucky Supply Co

Kentucky Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $80,000 of revenue on account during 2014. During 2014, the company collected $64,000 of cash from its receivables accounts. Kentucky estimates that it will be unable to collect 2% of revenue on account. The amount of net realizable value of receivables on the December 31, 2014 balance sheet would be:

A) $16,640.
B) $17,400.
C) $16,000.
D) $14,400.