The allowance for doubtful debts account had a balance of $1 800 before bad debts of $1 000 were written off and the allowance was adjusted to 5% of the accounts receivable balance of $40 000. The new amount of allowance for doubtful debts that is deducted from accounts receivable in the balance sheet is: Select one: a. $2200. b. $1200 c. $2000. d. $1400. e. Not one of the options