Having trouble finding the allowance of doubtful accounts on this problem. I was doing (2,700,000 x .0025)= 6750 + 5500 and getting 12,250 but it is marking the answer as wrong.

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $600,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,700,000. Bad debt expense is estimated at 1/4 of 1% of sales.

a. Determine the amount of the adjusting entry for uncollectible accounts. Answer: 6,750

b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

Accounts Receivable	600,000
Allowance for Doubtful Accounts
Bad Debt Expense	6,750

c. Determine the net realizable value of accounts receivable.