Zeta Co. reported sales revenue of $4,600,000 in its income statement for the year ended December 31, 2006. Additional information is as follows:
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|
12/31/05 |
12/31/06 |
|
|
Accounts receivable |
$1,000,000 |
$1,300,000 |
|
Allowance for uncollectible accounts |
(60,000) |
(110,000) |
Zeta wrote off uncollectible accounts totaling $20,000 during 2006. Under the cash basis of accounting, Zeta would have reported 2006 sales of
- $4,900,000
- $4,350,000
- $4,300,000
- $4,280,000