Net credit sales for the month are \(\$ 800,000\) and bad debts are expected to be \(1.5 \%\) of net credit sales. The company uses the percentage of sales basis. If the Allowance for Doubtful Accounts has a credit balance of \(\$ 15,000\) before adjustment, what is the balance after adjustment?

a. \(\$ 15,000\).

b. \(\$ 27,000\).

c. \(\$ 23,000\).

d. \(\$ 31,000\).

(SO 3)