Suppose at the end of the year before any adjusting entries, a company has a balance in Allowance for Uncollectible Accounts of $5,000 (debit). During the year, the company reported the following amounts:

Credit sales to customers= $550,000

Cash collections from customers= $540,000

Actual bad debts= $20,000

What was the balance of Allowance for Uncollectible Accounts at the beginning of the year?

a)

$25,000

b)

$10,000

c)

$15,000

d)

$20,000