Detailed Answer
Answer (C) is correct.
Under the allowance method, uncollectible accounts are written off by a
debit to the allowance and a credit to accounts receivable. The $500 of
recovered bad debts is accounted for by a debit to accounts receivable
and a credit to the allowance. The $2,000 bad debt expense is also
credited to the allowance. The amount of accounts receivable written off
can be calculated as follows:
Beginning allowance $4,700
Bad debt expense 2,000
Recoveries 500
Ending allowance (5,000)
A/R written off $2,200