urgent please answer it.

During the year, Wendell Company had net credit sales of $42,000. At the end of the year, before adjusting entries, the balance in Accounts Receivable was $13,000 (debit) and the balance in Allowance for Bad Debts was $640 (credit). If the company uses an income statement approach to estimate bad debts at 2%, what is the ending balance in the Allowance for Bad Debts account? O A. $1.480 B. $900 C. $840 OD. $200 During the year, Wendell Company had net credit sales of $42,000. At the end of the year, before adjusting entries, the balance in Accounts Receivable was $13,000 (debit) and the balance in Allowance for Bad Debts was $640 (credit). If the company uses an income statement approach to estimate bad debts at 2%, what is the ending balance in the Allowance for Bad Debts account? O A. $1.480 B. $900 C. $840 OD. $200