Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $30,500 was sold for $57,000 in 2012. Collections on this sale were $19,700 in 2012, $14,400 in 2013, and $22,900 in 2014. In its 2012 year-end balance sheet, Reliable would report installment receivables (net) of:

a)	$37,300.
b)	$19,700.
c)	$10,800.