Panda Co. uses the allowance method to account for bad debts. At the beginning of 2016, the allowance account had a credit balance of $6,139. Credit sales for 2016 totaled $465,734 and the year-end accounts receivable balance was $40,281. During this year, $6,974 in receivables were determined to be uncollectible and were written off. Panda anticipates that 2% of all credit sales will ultimately become uncollectible.

What is the net realizable value Manda Panda should report in its 2016 balance sheet?___________