Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $120,000 and $135,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $180 in accounts receivable were written off during 2021 and if the allowance account had a balance of $780 on December 31, 2021? Multiple Choice

$35,000.

None of these answer choices are correct.

$41,180.

$630.