The ending balance of accounts receivable was $75,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $360,000. Sales reported on the income statement were $387,000. Based on this information, the beginning balance in accounts receivable was:

A) $102,000
B) $27,000
C) $103,000
D) $48,000

The adjustment for accounts receivable can be calculated as follows:
Beginning accounts receivable + Sales on credit - Collections = Ending accounts receivable
Let X be the beginning balance of accounts receivable:
X + 387,000 - Collections = 75,000
Collections = 387,000 - X - 75,000
Collections = 312,000 - X
Next, we need to use the sales reported on the income statement to calculate collections made by cash:
Sales reported on the income statement = Sales on Credit + Collections
387,000 = 360,000 + Collections
Collections = 27,000
Now we can solve for X:
312,000 - X = 27,000
X = $48,000. Therefore, the beginning balance in accounts receivable was $48,000.