Coronado Industries has outstanding accounts receivable totaling $1.29 million as of December 31 and sales on credit during the year of $6.47 million. There is also a debit balance of $5700 in the allowance for doubtful accounts. If the company estimates that 3% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

$33000.

$38700.

$44400.

$38529.