In its first month in business, Jones, Inc. sold merchandise to customers on account for $119,800. It collected $72,000 on those sales during the first month and recorded Revenue for the period of $119,800. Cost of goods sold expense was $60,000, and other expenses, including taxes, were $30,000. Which one of the following statements is correct?
Question 7 options:

1. Net income (loss) for the first month was ($18,000), and ending balance of accounts receivable was $47,800.
2. Net income for the first month was $29,800, and ending balance of accounts receivable was $47,800.
3. Net income for the first month was $29,800, and cash collected from customers was $29,800.
4. Net income for the first month was $29,800, and ending balance of accountsreceivable was $119,800.