The following balances were drawn from the accounts of Stripling Company as of December 31, Year 1.
Accounts Receivable $60,000
Allowance for Doubtful Accounts $9,000
During Year 2 Stripling earned $700,000 of revenue on account and collected $710,000 cash from accounts receivable. Also, the company wrote off $8,000 of accounts receivable that were classified as uncollectible during Year 2. If Stripling estimates uncollectible accounts expense to be 1% of revenue, the net realizable value of receivables as of December 31, Year 2 will be______.
a. $50,000.
b. $32,000.
c. $34,000.
d. $42,000.