Micelle Inc. reported credit sales of

$600,000,

cash collections of

$450,000

and bad debt expense of

$15,000

for last year. Accounts receivable had a balance of

$1,000,000

at the end of the year. Assuming there are no write-offs made during the year, what was the balance in the accounts receivable account at the beginning of the year?

A.

$400,000

B.

$850,000

C.

$865,000

D.

$1,150,000