For the month of December, the records of Balin Corporation show the following information:

Cash received on accounts receivable ..................

$ 70,000

Cash sales ............................................

60,000

Accounts Receivable, December 1 .......................

160,000

Accounts Receivable, December 31 ......................

148,000

Accounts Receivable written off as uncollectible ......

2,000

The corporation uses the direct write-off method in accounting for uncollectible accounts receivable. What are the gross sales for the month of December?

A) $118,000

B) $120,000

C) $130,000

D) $144,000 Please explain why the answers are incorrect and why the correct one is right