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Based on its past collection experience, Broydo Company estimates bad debts at the rate of 2 percent of net credit sales. On January 1, 2015,

Based on its past collection experience, Broydo Company estimates bad debts at the rate of 2 percent of net credit sales. On January 1, 2015, the allowance for doubtful accounts had a credit balance of $10,000. During 2015, Broydo wrote off $18,000 of uncollectible receivables and recovered $5,000 on accounts written off in prior years. If net credit sales for 2015 totaled $1,000,000, the allowance for doubtful accounts balance at the end of 2015 should be

A. $17,000.

B. $20,000.

C. $23,000.

D. $35,000.

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