A portion of the current assets section of the December 31
A portion of the current assets section of the December 31, 2010, balance sheet for Gibbs Co. is presented here:


The company’s accounting records revealed the following information for the year ended December 31, 2011:
Sales (all on account) . . . . . . . . . . . . . . . . . . . . . . . . . . $480,000
Cash collections from customers . . . . . . . . . . . . . . . . . 435,000
Accounts written off . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500
Bad debts expense (accrued at 12/31/11) . . . . . . . . . . . 16,500
Required:
Calculate the net realizable value of accounts receivable at December 31, 2011, and prepare the appropriate balance sheet presentation for Gibbs Co., as of that point intime.
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