Chez Fred Bakery estimates the allowance for uncollectible accounts at 2% of the ending balance of accounts receivable. During 2013, Chez Fred's credit sales and collections were $122,000 and $138,000, respectively. What was the balance of accounts receivables on January 1, 2013, if $140 in accounts receivable were written off during 2013 and if the allowance account had a balance of $660 on December 31, 2013?

$38,000.

$460.

$49,140.

None of the above is correct.