XYZ, Inc had net sales in 2019 of 700,000. At December 31, 2019, before adjusting entries, the balances in selected accounts were: accounts receivable 125,000 debit, and allowance for doubtful accounts 1,200 credit. XYZ, Inc. estimates that 2% of its net sales will prove to be uncollectable. What is the cash realizable value of the receivables reported on the statement of financial position at December 31, 2019?

why is this not 111000? because after bad debt expense provision allowance for doubtful accounts will be 14000 so 125000-12400=111000