Hancock Medical Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $94,500 of revenue on account during Year 1. During Year 1, Hancock collected $74,200 of cash from its receivables accounts. The company estimates that it will be unable to collect 1% of revenue on account. The amount of net realizable value of receivables on the December 31, Year 1 balance sheet would be:
A. $20,097.
B. $19,355.
C. $19,558.
D. $20,300.
Answer: B
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