In 2025, the Sunland Service Co. had net credit sales of $8,700,000. On January 1, 2025, the Allowance for Doubtful Accounts had a credit balance of $21,600. During 2025, $32,700 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 5% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $2,270,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2025?
- $22,450
- $32,700
- $11,350
- $32,950