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Sheffield Corp. has outstanding accounts receivable totaling $5.86 million as of December 31 and sales on credit during the year of $31.7 million. There is

Sheffield Corp. has outstanding accounts receivable totaling $5.86 million as of December 31 and sales on credit during the year of $31.7 million. There is also a debit balance of $13000 in the allowance for doubtful accounts. If the company estimates that 7% of its outstanding receivables will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

$2219000.

$410200.

$397200.

$423200.

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