Answer: B.Allowance for doubtful debt account will show a credit balance of $7300
Explanation:
Allowance for doubtful debt account will show a credit balance of $7300.
Allowance for doubtful debt balance = opening balance + allowance for doubtful debt for January - accounts receivable written off
doubtful debt for January = 350 000 x 2% = 7000
Allowance for doubtful debt balance= $3200 + $7000 - $2900 = $7300