Answer:
$267,000
Explanation:
When a company assesses that some of its receivables (due from customers who bought goods on account/credit) may not be collectible, the required entries are debit bad debt expense and credit allowance for bad debt.
The credit to allowance for bad debt is netted off the debit in accounts receivables to determine the net receivables in the balance sheet at the end of the period.
Hence Craft will show on its year-end balance sheet a net realizable value of its accounts receivable
= $295,000 - $28,000
= $267,000
