The Allowance for Bad Debts account has a credit balance of $5,000 before the adjusting entry for bad debts expense. Thecompany's management estimates that 3% of net credit sales will be uncollectible for the year 2025. Net credit sales for the year amounted to $300,000. What will be the balance of Allowance for Bad Debts on the December31, 2025 balancesheet?

A.

$8,850

B.

$5,000

C.

$9,000

D.