Chipmunk Company reported total sales for the current year to be $15,000,000, including cash sales of $3,000,000. Management estimates bad debts to be 5% of credit sales. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $60,000.

The ending balance of the Allowance for Doubtful Accounts after adjustment will be:

		$540,000
		$660,000
		$360,000
		$510,000