The data presented below are for Mellon Corporation for the year ended December 31, 2017:

Sales (100% on credit) --------------------------------------------------------------------------------$1,500,000

Sales Return-------------------------------------------------------------------------------------------------$60,000

Accounts receivable (Dec 31, 2017)-------------------------------------------------------------------$250,000

Allowance for doubtful accounts (credit balance) (before adjustment at Dec 31, 2017)------$3,000

Estimated amount of uncollectible accounts based on an aging analysis ------------------------$31,000

If Mellon uses 2% of net credit sales to estimate its bad debts, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts?

a. $25,800

b. $27,000

c. $33,000

d. $31,800