During 2012, its first year of operations, Pave Construction provides services on account of $140,000. By the end of 2012, cash collections on these accounts total $100,000. Pave estimates that 30% of the uncollected accounts will be bad debts.
Required:
1. Record the adjustment for uncollectible accounts on December 31, 2012.
2. Calculate the net realizable value of accounts receivable.