Elko Purchasing Consultants estimates bad debts to be 3.5% of net credit sales. During 2021, total sales were $6,200,000, of which 35% were for cash. Sales returns and allowances for the year were $128,000, all related to credit sales. Accounts receivable in the amount of $130,000 were identified as uncollectible and written off during 2021. Calculate the adjusted balance in the allowance for doubtful accounts at December 31, 2021, assuming a credit balance on January 1, 2021, of $160,000.