Sunland Company had a 1/1/20 balance in the Allowance for Doubtful Accounts of $45000. During 2020, it wrote off $28500 of accounts and collected $8600 on accounts previously written off. The balance in Accounts Receivable was $810000 at 1/1 and $970000 at 12/31. At 12/31/20, Sunland estimates that 5% of accounts receivable will prove to be uncollectible. What should Sunland report as its Allowance for Doubtful Accounts at 12/31/20?

$19900.

$48500.

$28325.

$19725.