Patriots Corp. reported the following account balances (always assume account balances are "normal" unless a problem tells you otherwise.):

Accounts Receivable, 1/1/Year3 $ 80,000

Allowance for Uncollectible accounts 1/1/Year3 $ 2,400

Sales on Credit, during Year3 $ 300,000

Collections on account, during Year3 $ 270,000

Write-offs of uncollectible accounts, during Year3 $ 2,800

What is the net realizable value of accounts receivable at January 1, Year3 (the beginning of the accounting period)?

Hint:

This is the beginning of an accounting period, which means all of the balance sheet accounts have already been adjusted as of 12/31/Year2. That should tell you if the balance in the Allowance account is a debit balance or a credit balance. This means that as it was adjusted, it would be a normal balance at this point for a contra-asset account.

In addition, please note that when I show balances in the equation- a contra asset with a normal balance is listed as a negative account because it is a negative asset. When the account balance is just listed as an answer choice -- assume it is a normal balance unless otherwise indicated.

a.77,200

b.82,400

c.110,000

d.77,600

e.80,000