Korea, Inc had net sales in $2022$ of $700,000.$ At December $31,2022,$ before adjusting entries, the balances in selected accounts were: accounts receivable $125,000$ debit, and allowance for doubtful accounts $1,200$ debit. Korea estimates that $2\%$ of its accounts receivable will prove to be uncollectable. What is the cash realizable value of the receivables reported on the statement of financial position at December $31,2022?$

a$.112,200$

b$.122,500$

c$.111,000$

d$.109,800$