The following information relates to Jay Co.'s accounts receivable for Year 2: | |
|---|
| Accounts receivable, 1/1/Year 2 | $ 650,000 | | Credit sales for Year 2 | 2,700,000 | | Sales returns for Year 2 | 75,000 | | Accounts written off during Year 2 | 40,000 | | Collections from customers during Year 2 | 2,150,000 | | Estimated future sales returns at 12/31/Year 2 | 50,000 | | Estimated uncollectible accounts at 12/31/Year 2 | 110,000 |
What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, Year 2?
|
a. | $925,000 | |
b. | $1,200,000 | |
c. | $1,085,000 | |
d. | $1,125,000 |
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