ACC Tax ch 13

The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2016, the allowance account had a credit balance of $5,809. Credit sales for 2016 totaled $447,651 and the year-end accounts receivable balance was $44,679. During this year, $6,381 in receivables were determined to be uncollectible and were written off. Manda Panda anticipates that 1% of all credit sales will ultimately become uncollectible.

What is the net realizable value Manda Panda should report in its 2016 balance sheet?_________