The miller company earned $133,000 of revenue during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $87,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.

There is multiple choice questions answers: $42,010, $43,390, $49,990, or $46,000.

How did you get the answer?

Accounts receivable + uncollectible = ? and then times 3%.

I tried $133,000-87,000=46,000

46,000x.03=2760

46,000-2760=43,240

Which was not a choice