Morrow Incorporated uses the percentage of credit sales method of estimating doubtful accounts. The Allowance for Doubtful Accounts has an unadjusted credit balance of $3,500 and the company had $180,000 of net credit sales during the period. Morrow has experienced bad debt losses of 4% of credit sales in prior periods. After making the adjusting entry for estimated bad debts, what is the ending balance in the Allowance for Doubtful Accounts account? Multiple Choice $7,000 $7,200 $3,700 $10,700