Foster Corporation shows the following information in its December 31, 2015 balances:

Credit sales $600,000

Sales returns and allowances 30,000

Accounts receivable (1/1) 90,000

Allowance for bad debts (1/1) 22,000

Cash collections 85,000

Write-offs 15,000

If Foster were to use percentage-of-receivables method for estimating bad debts, what would be the net realizable value, as reported in the balance sheet? Foster estimates that 2% of receivables will become uncollectible.

a. $420,000

b. $442,000

c. $538,000

d. $548,800

e. $627,200