Allowance Method for Accounting for Bad Debts

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $185,000, and the balance in Allowance for Doubtful Accounts was $3,150. EZ Tech's sales in 2017 were $1,390,000, 80% of which were on credit. Collections on account during the year were $890,000. The company wrote off $5,000 of uncollectible accounts during the year.

3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)?

Using the percentage of sales approach, the net realizable value of the receivables is?

$278,000

Using the percentage of year-end receivables approach, the net realizable value of the receivables is?

$