In 2019, Patterson Wholesale Company had net credit sales of $750,000. On January 1, 2019, Allowance for Doubtful Accounts had a credit balance of $18,000.

During 2019, $30,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance was $200,000, what is the required adjustment to Allowance for Doubtful Accounts at December 31, 2019?

(a) $20,000.

(b) $75,000.

(c) $32,000.

(d) $30,000.