Hancock Medical Supply Co.. which had no beginning balance In its Accounts Receivable and Allowance for Doubtful Accounts, earned $86,000 of revenue on account during 2016. During 2016. Hancock collected $68,200 of cash from its receivables accounts. The company estimates that it will be unable to collect 1% of revenue on account. The amount of net realizable value of receivables on the December 31, 2016 balance sheet would be:

1. $17,118.

2. $16,940.

3. $17,800.

4. $17.622.