1. Entity G uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $500,000. Management estimates that 5% of accounts receivable will be uncollectible. The Allowance for Doubtful Accounts has a credit balance of $4,000 before adjustment. What is the net (cash) realizable value of the accounts receivable immediately after adjustment?

   		$471,000
   		$500,000
   		$496,000
   		$475,000