compute the amount to be collected (also known as the net realizeable value) as a percentage of respective year end receivables balance at the end of 2011 and 2012.

At a January 2012 meeting, the president of Hook the Crook Company announced the credit evaluation department was being disbanded because it had restricted the company's growth The sales staff would now make credit decisions. By the end of the year, Hook the Crook had generated significant gains in sales and the president was very pleased. The accounting department provided the following data 2012 2011 Sales (all are on credit) Cost Of Goods Sold Accounts Receivable Allowance for bad debt, 12/31 $8,000,000 7,000,000 1,000,000 30,000 21,000,000 13,000,000 The $13,000,000 receivables balance was aged as follows: Percentage expected to be collected Age of receivable Amount Under 31 days 31 60 days 61 -90 days Over 90 da $4,000,000 3,500,000 3,000,000 2,500,000 95% 90% 7 5% 50% $30,000 were written off during 2012 and the rest of the balance of accounts receivable from December 31, 2011 was collected. No accounts were written off for 2012 credit sales