A business has an ending balance in Accounts Receivable of \($35,000\); credit sales for the year of \($300,000\); and a credit balance in Allowance for Bad Debts of \($800\). If the percentage of sales method is used and the percentage is estimated at 1% of credit sales, what is the ending balance in Allowance for Bad Debts after the adjusting entry?

(a) \($3,000\)

(c) \($2,200\)

(b) \($3,800\)

(d) \($1,150\)