Ryan Company calculates bad debts with the percentage of sales method, using a percentage of 6%. At the end of 20X3, Ryan had an accounts receivable balance of $10,000 and a debit balance in allowance for doubtful accounts of $150 before any adjustments. During the year, Ryan made credit sales of $24,000. What will be the ending balance in the allowance for doubtful accounts after the adjustment for bad debts is made? Select one: a. $1,590 O b. $750 O c. $450 O d. $1,440 O e. $1,290

Ryan Company calculates bad debts with the percentage of sales method, using a percentage of 6%. At the end of 203, Ryan had an accounts receivable balance of $10,000 and a debit balance in allowance for doubtful accounts of $ before any adjustments. During the year, Ryan made credit sales of $24,000. What will be the ending balance in the allowance for doubtful accounts after the adjustment for bad debts is made? Select one: a. $1,590 b. $750 c. $450 d. $1,440 e. $1,290