On January 1, 2012 the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $30,000 and $500, respectively. During the year the company reported $75,000 of credit sales. There were $550 of receivables written-off as uncollectible in 2012. Cash collections of receivables amounted to $74,550. The company estimates that it will be unable to collect one percent of credit sales.

The entry to recognize the write-off of an uncollectible account will:

• increase total assets and total equity.
• increase total assets and decrease total equity.
• decrease total assets and total equity.
• not affect total assets or total equity.

The entry required to recognize the uncollectible accounts expense for 2012 will:

• increase total assets and retained earnings.
• decrease total assets and retained earnings.
• decrease total assets and increase net income.
• increase total assets and decrease net income.

The net realizable value of receivables appearing on the December 31, 2012 balance sheet will amount