At December 31, 2012, Chambers Co. has gross accounts receivable of $127,000. There is a $10,000 credit balance in the allowance for doubtful accounts at the beginning of the year. During the year, the company had sales of $480,000, 30% of which were credit sales. The company uses the percentage of sales basis to estimate bad debt expense. Historically, bad debt expense has averaged 1.5% of credit sales. Actual write-offs of accounts receivable for 2012 amount to $3,240. The allowance for doubtful accounts at December 31, 2012 is: Multiple Choice $10,000 $8,920 $12,160 $15,400 None of the other alternatives are correct