Ellis Company started the year with a $4,600 balance in accounts receivable and a $150 balance in the allowance for doubtful accounts. The company had credit sales of $12,000, collections on accounts receivable of $13,000, and wrote off uncollectible accounts of $200 during the year. The company believes that 2 percent of its credit sales will be uncollectible.

The balance in the accounts receivable account at the end of the year would be

Question 2 options:

A)

$3,600.

B)

$3,400.

C)

$3,250.

D)

$4,360.