Leach Inc. experienced the following events for the first two years of its operations: Year 1:

Issued $10,000 of common stock for cash.

Provided $60,000 of services on account.

Provided $31,000 of services and received cash.

Collected $29,000 cash from accounts receivable.

Paid $20,000 of salaries expense for the year.

Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

Wrote off an uncollectible account for $720.

Provided $80,000 of services on account.

Provided $25,000 of services and collected cash.

Collected $62,000 cash from accounts receivable.

Paid $24,000 of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible.

c. What is the net realizable value of the accounts receivable at December 31, Year 1?