Carefree Corporation had a 1/1/13 balance in the Allowance for Doubtful Accounts of $14,700 and a balance in Accounts Receivable of $278,000. Carefree estimates that 5% of total credit sales will prove to be uncollectible and 3% of sales will be returned. The company also reported the following:

Credit Sales $325,000

Cash collections 268,400

Write-offs 8,600

Recoveries 2,500

Sales Returns 1,400

What should Carefree report as the net realizable value of accounts receivable at 12/31/13?

a. $264,000. b. $301,850. c. $308,350. d. $309,750. e. $300,450. f. $324,600. g. $318,350. h. None of the above