Based on the Following Information for Calendar 2021 If Bad Debts Expense Is Estimated at 1

Based on the following information for calendar 2021: $$\begin{array} { | l | r | } \hline \text { Accounts receivable, January 1 } & \$ 125,000 \\\hline \text { Credit sales during the year } & 1,400,000 \\\hline \text { Allowance for doubtful accounts, January 1 } & 15,000 \\\hline \text { Cash collected on accounts receivable during the year } & 1,350,000 \\\hline \text { Uncollectible accounts written off during the year } & 8,000 \\\hline\end{array}$$ If bad debts expense is estimated at 1.5% of credit sales, what is the balance in the allowance for doubtful accounts at year end?

A) $13,000
B) $15,625
C) $28,000
D) $36,000

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