Rainbow Corporation uses the allowance method in estimating uncollectible. At the end of the year, it estimates that 2% of its outstanding receivables of $500,000 will be uncollectible. Allowance for Doubtful Accounts has a balance of $1,000 before adjustment (i.e., after all the write-offs for the year). What will be the ending balance of Rainbow Corp’s Allowance that year:

a. $1,000
b. $9,000
c. $10,000
d. $11,000
e. Can’t tell without more information