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Hawky Dawky Ltd. began operations on July 1, 2020 and had the following sales and collection activities during 2020: Sale to Customer 1 on August

Hawky Dawky Ltd. began operations on July 1, 2020 and had the following sales and collection activities during 2020:

Sale to Customer 1 on August 1, 2020 $ 100000

Collections from Customer 1 during the year 84000

Sale to Customer 2 on November 1, 2020 122000

Collections from Customer 2 during the year 80000

Sale to Customer 3 on December 15, 2020 108000

Collections from Customer 3 during the year 35000

There were no other transactions during the year. Hawky Dawky Ltd. offers its customers terms of 2/10 net 30. Assume that any amounts customers paid was after the 10-day discount period.

Hawky Dawky estimates that the likelihood of not being able to collect an accounts receivable is as follows

Accounts not yet due 1 %

Accounts overdue but less than 90 days overdue 4 %

Accounts overdue 90 days or more 17 %

Calculate the net balance of accounts receivable at the end of the year (December 31, 2020).

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