Farson Company provided the following information relating to current operations:

Accounts receivable, January

Accounts Receivable, January 1	4,000,000
Accounts Receivable collected	8,400,000
Cash sales	2,000,000
Inventory, January 1	4,800,000
Inventory, December 31	4,400,000
Purchases	8,000,000
Gross Margin on sales	4,200,000

What is the balance of accounts receivable on December 31? Please show solution

a. 8,200,000

b. 6,200,000

c. 2,000,000

d. 4,200,000