Before year-end adjusting entries, Dunn Company's account balances at December 31, 2012, for

accounts receivable and the related allowance for uncollectible accounts were $1,200,000 and $90,000,

respectively. An aging of accounts receivable indicated that $125,000 of the December 31 receivables

are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is

a. $1,165,000.

b. $1,075,000.

c. $985,000.

d. $1,110,000