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During 2015, Ace Hospital records $4,000,000 of patient service revenues from patients and insurance companies. At the end of the year, contractual adjustments totaled $100,000 and $200,000 of patient service receivables were written off using the direct write-off method. What amount of net revenue should Ace report?
a. $4,000,000.
b. $4,100,000.
c. $3,900,000.
d. $3,800,000
e. $3,700,000.
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