Morrow Incorporated uses the percentage of credit sales method of estimating doubtful accounts. The Allowance for Doubtful Accounts has an unadjusted credit balance of $4,500 and the company had $230,000 of net credit sales during the period. Morrow has experienced bad debt losses of 3% 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

• $6,900

• $9,000

• $2,400

• $11,400