Hancock Medical Supply Co. ,earned $160,000 of revenue on account during Year 1,its first year of operation.During Year 1,Hancock collected $128,000 of cash from its receivables accounts.The company did not write-off any uncollectible accounts.It estimates that it will be unable to collect 1% of revenue on account.What is the net realizable value of receivables that will be reported on the balance sheet at December 31,Year 1?

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Ending accounts receivable = Beginning accounts receivable of $0 + Revenue on account of $160,000 - Collections on account of $128,000 = $32,000
Ending allowance for doubtful accounts = Beginning allowance for doubtful accounts of $0 + Uncollectible accounts expense of ($160,000 × 1%)- Write-offs of $0 = $1,600
Net realizable value = Accounts receivable of $32,000 - Allowance for doubtful accounts of $1,600 = $30,400