Swifty Corporation has outstanding accounts receivable totaling $5.85 million as of December 31 and sales on credit during the year of $32.2 million. There is also a debit balance of $13000 in the allowance for doubtful accounts. If the company estimates that 8% 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?

$2576000.

$468000.

$481000.

$455000.