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Leach Inc. experienced the following events for the first two years of its operations: Year...

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Accounting

Leach Inc. experienced the following events for the first two years of its operations: Year 1:

  1. Issued $24,000 of common stock for cash.
  2. Provided $93,400 of services on account.
  3. Provided $50,000 of services and received cash.
  4. Collected $83,000 cash from accounts receivable.
  5. Paid $52,000 of salaries expense for the year.
  6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible.
  7. Closed the revenue account.
  8. Closed the expense account.

Year 2:

  1. Wrote off an uncollectible account for $850.
  2. Provided $102,000 of services on account.
  3. Provided $46,000 of services and collected cash.
  4. Collected $95,000 cash from accounts receivable.
  5. Paid $79,000 of salaries expense for the year.
  6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible.

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

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