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Leach Incorporated experienced the following events for the first two years of its operations:

Year 1:

Issued $10,000 of common stock for cash.

Provided $70,000 of services on account.

Provided $31,000 of services and received cash.

Collected $39,000 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 7 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

Wrote off an uncollectible account for $2,670.

Provided $90,000 of services on account.

Provided $30,000 of services and collected cash.

Collected $72,000 cash from accounts receivable.

Paid $28,000 of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible.

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