Alderwood Company has provided the following information prior to any year$-$end bad debt adjustment:

Cash sales, $$454,000$

Credit sales, $$1,362,000$

Selling and administrative expenses, $$342,000$

Sales returns and allowances, $$102,000$

Gross profit, $$1,482,000$

Accounts receivable, $$342,000$

Sales discounts, $$54,000$

Allowance for doubtful accounts credit balance, $$3,760$

Alderwood estimates bad debt expense assuming that $1\mathrm{.}5\%$ of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense corded? recorded?

Multiple Choice

$$20,430.$

$$23,740$

$$24,190.$

$$16,670.$