3. During 2020, Belfour Inc. had sales on account of $189,000, cash sales of $78,000, and collections on account of $162,000. In addition, they collected $1,275 which had been written off as uncollectible in 2019. As a result of these transactions, the change in the accounts receivable balance indicates a

   1. $25,725 increase.

   2. $27,000 increase.

   3. $103,725 increase.

   4. $105,000 increase.