On December 31, 2022, Costa Coffee reported the following information on its balance sheet:

Accounts Receivable	$1,520,000
Allowance for Doubtful Accounts	86,000	(credit)

During 2023, the Company had the following transactions related to receivables:

Credit Sales	$5,520,000
Collections on Account	4,776,000
Accounts deemed uncollectible and written off	115,000
Collection on accounts previously written off	22,000

If bad debts are estimated to be 2.50% of credit sales, determine the ending balance in the Allowance for Doubtful Accounts after adjustments:

Select one:

a. $317,000

b. $109,000

c. $224,000

d. $131,000

e. $138,000