Hancock Medical Supply Co., earned $82,500 of revenue on account during Year 1, its first year of operation. During Year 1, Hancock collected $65,800 of cash from its receivables accounts. The company did not write-off any uncollectible accounts. It estimates that it will be unable to collect 1% of revenue on account. What is the net realizable value of receivables that will be reported on the balance sheet at December 31, Year 1?