The Miller company earned $135,000 of revenue during year 2. There was no beginning balance in the accounts receivable and allowance accounts. During year two, Miller collected $88,000 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 two was:

• $42,950
• $44,360
• $51,050
• $47,000