Marigold Corp.has outstanding accounts receivable totaling $1.26million as of December 31 and sales on credit during the year of $6.21million. There is also a debit balance of $5200in the allowance for doubtful accounts. If the company estimates that2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

$25200.

$30400.

$20000.

$25096.