Cong Son Merchandising had net sales in 2011 of JPY700,000. At December 31, 2011, before adjusting entries, the balances in selected accounts were: accounts receivable JPY125,000 debit, and allowance for doubtful accounts JPY1,200 credit. Cong Son estimates that 2% of its net sales will prove to be uncollectable. What is the cash realizable value of the receivables reported on the statement of financial position at December 31, 2012?