Question - The following information is available for Farr Company relative to 2010 operations:
Accounts receivable, January 1, 2010 $40,000
Account receivable collected during 2010 $84,000
Cash sales during 2010 $20,000
Inventory, January 1, 2010 $48,000
Inventory, December 31, 2010 $44,000
Purchases of inventory during 2010 $80,000
Gross margin on sales $42,000
What is Farr Company's accounts receivable balance at December 31, 2010?
a. $82,000
b. $62,000
c. $20,000
d. $146,000