Lithotech,Inc Had Net Sales in 2016 of $700,000

Multiple Choice

Lithotech,Inc had net sales in 2016 of $700,000.At December 31,2016,before adjusting entries,the balances in selected accounts were: accounts receivable $125,000 debit,and allowance for doubtful accounts $1,200 debit.Lithotech estimates that 2% of its net sales will prove to be uncollectible.What is the cash realizable value of the receivables reported on the statement of financial position at December 31,2016?

A) $109,800
B) $111,000
C) $112,200
D) $122,500