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The following information is from the 2017 records of Lane Bicycle Shop: Accounts receivable. December 31. 2017 S40.000 (debit) Allowance for Bad Debts. December 31. 2017 prior to adjustment 1.600 (debit) Net credit sales for 2017 180.000 Accounts written off as uncollectible during 2017 20.000 Cash sales during 2017 27.000 Bad debts expense is estimated by the aging - of - receivables method. Management estimates that $10,000 of accounts receivable will be uncollectible. Calculate the ending balance of Allowance for Bad Debts, after the adjustment for bad debts expense, at December 31. 2017. $10,000 $13,200 $5,400 $7,000