Chez Fred Bakery estimates the allowance for uncollectible accounts at 2% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $113,000 and $132,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $120 in accounts receivable were written off during 2021 and if the allowance account had a balance of $930 on December 31, 2021?
Multiple Choice
$32,000.
$500.
$65,620.
None of these answer choices are correct.
