1. The HH Company has provided the following information after year-end adjustments:

   Allowance for doubtful accounts was $20,000 at the end of the prior year

   Accounts receivable were $100,000 at the beginning of the year and $560,000 at the end of the year. 2% of account receivable is estimated to be uncollectible.

   Accounts written off as uncollectible totaled $5,000.

   Sales discounts were $30,000.

   What is the ending balance of allowance for doubtful accounts for current year?

   	a.	$24,800
   	b.	$15,000
   	c.	$39,000
   	d.	$26,200