Allowance Method for Accounting for Bad Debts

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $154,000, and the balance in Allowance for Doubtful Accounts was $2,600. EZ Tech's sales in 2017 were $1,160,000, 90% of which were on credit. Collections on account during the year were $740,000. The company wrote off $4,000 of uncollectible accounts during the year.

Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 6% of the year-end accounts receivable.

Using the percentage of year-end receivables approach, the net realizable value of the receivables is?