Reference no: EM132476823

Question - Jake Company records bad debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will prove to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150, 000 cash from its credit customers. The $150,000 includes a $6, 000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4, 000. Jake Company reported accounts receivable at January 1, 2019 of $88,000 and the allowance for doubtful accounts had an $8, 000 credit balance at January 1, 2019.

Required - Calculate the net realizable value of Jake Company's accounts receivable at December 31, 2019.