Steven Company provided the following information during the first year of operations:

Problem 5 Steven Company provided the following information during the first year of operations: Total merchandise purchases for the 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 receivables are collectible. What is the balance of accounts receivable on December 31