Industrial Equipment Supply is a new business. During its first year of operations, credit sales were $44,000 and collections of credit sales were $37,000. One account, $650, was written off. Management uses the aging-of-receivables method to account for bad debts expense and estimated $575 as uncollectible at year end. The ending balance of the Allowance for Bad Debts is ________.

Select one:

A. $230

B. $880

C. $575

D. $1,225