The following information relates to Jay Co.’s accounts receivable for 2006:
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Accounts receivable, 1/1/06 |
$ 650,000 |
|
Credit sales for 2006 |
2,700,000 |
|
Sales returns for 2006 |
75,000 |
|
Accounts written off during 2006 |
40,000 |
|
Collections from customers during 2006 |
2,150,000 |
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Estimated future sales returns at 12/31/06 |
50,000 |
|
Estimated uncollectible accounts at 12/31/06 |
110,000 |
What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, 2006?
- $1,200,000
- $1,125,000
- $1,085,000
- $ 925,000