Kentucky Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $192,000 of revenue on account during 2014. During 2014, the company collected $153,600 of cash from its receivables accounts. Kentucky 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, 2014 balance sheet would be:

$36,480.

$40,320.

$38,400.

$38,592.