In 2020, New Home Builders Company had gross sales of $750,000 on account and granted sales discounts of $15,000. On January 1, 2020, the allowance for doubtful accounts had a credit balance of $18,000. During 2020, $30,000 of uncollectible accounts receivable were written-off. Past experiences indicate that 3% of net credit sales become uncollectible. Using the percentage of net credit sales method, what should be the adjusted balance in the allowance for doubtful accounts at December 31, 2020?

Multiple Choice

• $10,050

• $10,500

• $34,500

• $22,050