5. The League, a not-for-profit organization, received the following pledges: All pledges are legally enforceable; however, the League’s experience indicates that 10% of all pledges prove to be...

5. The League, a not-for-profit organization, received the following pledges:

All pledges are legally enforceable; however, the League’s experience indicates that 10% of all pledges prove to be uncollectible. What amount should the League report as pledges receivable net of any required allowance account?

a. $135,000

b. $180,000

c. $315,000

d. $350,000