[The Following Information Applies to the Questions Displayed Below

question 57

Multiple Choice

[The following information applies to the questions displayed below.]

The Miller Company earned $190,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $136,000 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)$54,000
• B)$49,920
• C)$59,700
• D)$48,300

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Definitions:

Chaos

A state of extreme confusion and disorder, marked by a lack of predictability and control, often referenced in the context of systems, science, and societal conditions.

Federal Statute

A law passed by the United States Congress and signed by the President.

Preemption

The process by which the courts decide that a federal statute must take precedence over a state statute.

State Statute

A state statute is a written law passed by a legislative body at the state level, governing matters not reserved for the federal government.