Grayson Nursery sells trees and shrubbery. Although a majority of its sales are for cash, it makes a significant amount of credit sales. During 2016, its first year of operations, Grayson experienced the following:

Sales on account	$160,000
Cash sales	340,000
Collection of accounts receivables	147,500
Uncollectible accounts charged off during the year	700

Assuming that Grayson uses the direct write off method of accounting for uncollectible accounts, what is the net realizable value of accounts receivable at December 31, 2016?

a. $700

b. $13,200

c.$11,800

d. $12,500