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Problem 4-14 (AICPA Adapted) Faith Company provided the following information relating to current operations: Accounts receivable, January 1 Accounts receivable collected 4,000,000 Cash sales 8,400,000 Inventory, January 1 2,000,000 Inventory, December 31 4,800,000 4,400,000 Purchases 8,000,000 Gross margin on sales 4,200,000 What amount should be reported as accounts receivable on December 31? a. 8,200,000 b. 6,200,000 c. 2,000,000 d. 4,200,000 Problem 4-15 (AICPA Adapted) Steven Company provided the following information during the first year of operations: Total merchandise purchases for the current year 7,000,000 Merchandise inventory on December 31 1,400,000 Collections from customers 4,000,000 All merchandise was marked to sell at 40% above cost. All sales are on a credit basis and all accounts are collectible. What amount should be reported as accounts receivable on December 31? a. 1,000,000 b. 3,840,000 C. 5,000,000 d. 5,800,000