Chez Fred Bakery estimates the allowance for uncollectible accounts at 2% of the ending balance of accounts receivable. During 2018, Chez Fred's credit sales and collections were $105,000 and $139,000, respectively. What was the balance of accounts receivable on January 1, 2018, if $270 in accounts receivable were written off during 2018 and if the allowance account had a balance of $750 on December 31, 2018?

Multiple Choice

$39,000.

$950.

$71,770.

None of these answer choices are correct.