Greg Corp. reported revenue of $1,250,000 in its accrual-basis income statement for the year ended June 30, 2006. Additional information was as follows:

Accounts receivable June 30, 2005

$400,000

Accounts receivable June 30, 2006

530,000

Uncollectible accounts written off during the fiscal year

15,000

Under the cash basis, Greg should report revenue of

  1. $ 835,000
  2. $ 850,000
  3. $1,105,000
  4. $1,135,000