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Question - The Miller Company earned $119,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $80,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.
The net realizable value of Miller's receivables at the end of Year 2 was:
$35,430.
$39,000.
$36,600.
$42,570.
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