The allowance for doubtful debts account had a balance of $4500 before bad debts of $1000 were written off and the allowance was adjusted to 10% of the accounts receivable balance of $22 000. The new amount of allowance for doubtful debts that is deducted from accounts receivable in the balance sheet is:

$1400.

$2200.

$1200.

$1000.