Net sales for the month are $800,000 and bad debts are expected to be 1.5% of net sales. The company uses the percentage of sales approach. If Allowance for Doubtful Accounts has a credit balance of $15,000 before adjustment, what is the balance in the allowance account after the adjustment?

Select one:

a.$27,000

b.$12,000

c.$15,000

d.$23,000