A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. is presented here:

Accounts receivable$23,900Less: Allowance for bad debts(2,300)$21,600

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

Sales (all on account)$164,500Cash collections from customers137,000Accounts written off3,600Bad debts expense (accrued at 12/31/20)5,300

Required:

Calculate the net realizable value of accounts receivable at December 31, 2020, 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.)