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The Allowance for Bad Debts account has a credit balance of $4,000 before the adjusting entry for bad debts expense. Thecompany's management estimates that 4%

The Allowance for Bad Debts account has a credit balance of $4,000 before the adjusting entry for bad debts expense. Thecompany's management estimates that 4% of net credit sales will be uncollectible for the year 2025. Net credit sales for the year amounted to $290,000. What will be the balance of Allowance for Bad Debts on the December31, 2025 balancesheet?

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