During the year, Luther Company had net credit sales of $42,000. At the end of the year, before adjusting entries, the balance in Accounts Receivable was $13,500 (debit) and the balance in Allowance for Bad Debts was $640 (credit). If the company uses an income statement approach to estimate bad debts at 6%, what is the ending balance in the Allowance for Bad Debts account? O A. $3,160 O B. $1,450 O C. $2,520 O D. $1,880