Fearless Company began operations at the beginning of current year. The following information is available for the current year: Total merchandise purchases Ending inventory Collections from customers 7,000,000 1,400,000 4,000,000 All merchandise is marked to sell at 40% above cost. All sales are credit sales and all accounts are collectible. What is the balance of accounts receivable at year-end? a. 1,600,000 b. 2,440,000 C. 3,000,000 d.. 3,840,000

Fearless Company began operations at the beginning of current year. The following information is available for the current year: Total merchandise purchases Ending inventory Collections from customers 7,000,000 1,400,000 4,000,000 All merchandise is marked to sell at 40% above cost. All sales are credit sales and all accounts are collectible. What is the balance of accounts receivable at year-end? a. 1,600,000 b. 2,440,000 C. 3,000,000 d.. 3,840,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.6.5MBA

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