In 1996, D. H. Lawrence Company had net credit sales of \(\$ 750,000\). On January 1, 1996, Allowance for Doubtful Accounts had a credit balance of \(\$ 18,000\). During 1996, \(\$ 30,000\) of uncollectible accounts receivable were written off. Past experience indicates that \(3 \%\) of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 1996 ?

a. \(\$ 10,050\).

b. \(\$ 10,500\).

c. \(\$ 22,500\).

d. \(\$ 40,500\).