A portion of the current assets section of the December 31, 2020, balance sheet for Carr Co. is presented here:

Accounts receivable$57,000Less: Allowance for bad debts(6,500)$50,500

The company's accounting records revealed the following information for the year ended December 31, 2020:

Sales (all on account)$ 415,000Cash collections from customers428,000Accounts written off14,500Bad debts expense (accrued at 12/31/20)13,900

Required:

Using the information provided for 2020, calculate the net realizable value of accounts receivable at December 31, 2019, and prepare the appropriate balance sheet presentation for Carr Co., as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts. Remember that you are solving for the beginning balance of each account.)

At December 31, 2019

Accounts receivableLess:

Allowance for bad debts $7,100

Accounts receivable (Net)= $

(7,100)