Transcribed image text: Question 22 At January 1, 2006, ABC Co. has a credit balance of $260,000 in its allowance for doubtful accounts. Based on post experience, 2% of ARC Co.'s credit sales have been collectable ABC Core sales for 2006 were 59,000,000. In its December 31, 2006, balance sheet, what amount should ARC Co. report as allowance for doubal com O A $440,000 O $80,000 o 55,200 D$180,000