Lithotech, Inc had net sales in 2016 of $700,000. At December 31, 2016, before adjusting entries, the balances in selected accounts were: accounts receivable $125,000 debit, and allowance for doubtful accounts $1,200 debit. Lithotech estimates that 2% of its net sales will prove to be uncollectible. What is the cash realizable value of the receivables reported on the statement of financial position at December 31, 2016?

A) $109,800

B) $111,000

C) $112,200

D) $122,500

P/S: Answer appears to be B, but I believe it is C. Please help me