Howdy! I need help answering the following question! I have included a screen shot with all the information given. If someone could help me out that would be great:)

On December 31, 2018, SPK Inc reported the following information on its balance sheet: Accounts Receivables $950,000 Allowance for Doubtful Accounts $ 54,000 cr During 2019, the company had the following transactions related to receivables: Credit Sales $3,450,000 Collections on Account $2,985,000 Accounts deemed uncollectible and written off 5 72,000 Collection on accounts previously written off accounts $ 14,000 If bad debts are estimated to be 2.5% of credit sales, determine the ending balance in the Allowance for Doubtful Accounts after adjustments. O A. $ 68,250 O B. $198,250 O C. $140,250 O D. $ 86,250 O E. $ 82,250