A portion of the current assets section of the December 31, 2013, balance sheet for Gibbs Co. is presented here:

Accounts receivable	$	24,600
Less: Allowance for bad debts		(2,400	)	$	22,200

The company's accounting records revealed the following information for the year ended December 31, 2014:

Sales (all on account)	$	152,000
Cash collections from customers		145,000
Accounts written off		3,600
Bad debts expense (accrued at 12/31/14)		5,200

Required:

Calculate the net realizable value of accounts receivable at December 31, 2014, and prepare the appropriate balance sheet presentation for Gibbs Co., as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.) (Amounts to be deducted should be indicated with minus sign.)