Precision Parts sells new auto parts. Although a majority of its sales are for cash, it makes a significant amount of credit sales. During 2016, its first year of operations, Precision experienced the following:

Sales on account	$160,000
Cash sales	340,000
Collection of accounts receivables	147,500
Uncollectible accounts charged off during the year	700

Assuming that Precision uses the allowance method of accounting for uncollectible accounts and estimates that 1 percent of its sales on account will not be collected, what is the ending balance of Allowance for Doubtful Accounts at December 31, 2016, after all entries and adjusting entries are posted?

$900

$1,600

$700

$11,800