The following accounts were taken from Frank Co.s unadjusted trial balance at December 31, 20x9:

Debit

Credit

Accounts Receivable

$1051845

Allowance for doubtful accounts

32375

Net credit sales

$2608350

Frank estimates that 4% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 20x9, the allowance for doubtful accounts should have a credit balance of:

a. $104334

b. $40779

c. $42074

d. $43369