During the year. Sherman Company had net credit sales of $40,000. At the end of the year before adjusting entries, the balance in Accounts Receivable was $14.500 (debit) and the balance in Allowance for Bad Debts was $620 (credit). If the company uses an income statement approach to estimate bad debts at 2%, what is the ending balance in the Allowance for Bad Debts account? O A 5910 O B. $180 OC. 51,420 OD. $800