On January 1, Year 2 Grande Company had a $25,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $86,000 of service on account. The company collected $82,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows?
A. $86,000
B. $80,850
C. $61,500
D. $82,500
Answer: D
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