December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$	1,905,000
Credit sales	$	5,682,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable	$	1,270,100	debit
Allowance for doubtful accounts	$	16,580	debit

Bad debts are estimated to be 1.5% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.

Can you show how you get the answer because I was taking the credit cost $5,682,000 and multiplying it by 1.5 to get $85,230 and that's wrong? What am I missing? Thank you.