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The Miller Company earned $111,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During

The Miller Company earned $111,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $76,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.What is the net realizable value of Miller's receivables at the end of Year 1?

a) $38,330

b) $31,670

c) $32,720

d) $35,000

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