Waterway Industries has outstanding accounts receivable totaling $1.29 million as of December 31 and sales on credit during the year of $6.33 million. There is also a debit balance of $6500 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

$19300.

$25800.

$32300.

$25670.