Reference no: EM132757786

Nakitamona company reported following items in its accounts receivable:

Advances from customers (600,000)

Worthless accounts 100,000

Advances to suppliers 400,000

Advances to subsidiary 1,000,000

Receivables from customers 3,500,000

Subscriptions receivable 2,200,000

Receivable from common carrier for lost goods 125,000

Installments receivable due 1-18 months 850,000

Collection from subscriptions receivable (100,000)

Receivables from officers for merchandise sold to them 150,000

Postdated checks from customers for merchandise sold to them 200,000

Problem 1: What is the correct balance of trade accounts receivable?

Option 1: 4,700,000

Option 2: 4,750,000

Option 3: 4,050,000

Option 4: 4,150,000