On the first day of Year Two, the Raleigh Corporation holds accounts receivable of $500,000 and an allowance for doubtful accounts of $25,000 for a net realizable value of $475,000. During the year, credit sales were $520,000, and cash collections amounted to $440,000. In addition, $25,000 in receivables were written off as uncollectible. If 8 percent of sales is estimated as uncollectible each year, what is the balance in the allowance account at the end of Year Two? ($6,000) $8,400 $38,600 $41,600