Accounts receivable, December 31, 2017: $41,000 (Debit)

Allowance for Bad Debts, December 31, 2017 prior to adjustment: $1000 (Debit)

Net credit sales for 2017: $178000

Accounts written off as uncollectible during 2017: $12000

Cash sales during 2017: $28000

Bad debts expense is estimated by the percent-of-sales method. Management estimates 3% of the net credit sales will be uncollectible. The ending balance of the Allowance for Bad Debt account after adjustments will be?

A. $4340

B. $6340

C. $5180

D. $7180