Based on the following information for calendar2021:

Accountsreceivable, January 1

$125,000

Credit sales during the year

1,400,000

Allowance for doubtfulaccounts, January 1

15,000

Cash collected on accounts receivable during the year

1,350,000

Uncollectible accounts written off during the year

8,000

If bad debts expense is estimated at1.5% of creditsales, what is the balance in the allowance for doubtful accounts at yearend?

A.

$15,625

B.

$28,000

C.

$13,000

D.

$36,000