The Following Information Is from the 2016 Records of Armand

Multiple Choice

The following information is from the 2016 records of Armand Camera Shop: $\begin{array}{|l|l|}\hline \text { Accounts receivable, 31 December } 2016 &\$ 44,000 \text { (debit) } \\\hline\begin{array}{l}\text { Allowance for doubtful debts, 31 December } 2016\end{array} &\\\text { prior to adjustment } & 1400 \text { (debit) } \\\hline \text { Net credit sales for } 2016 & 177,000 \\\hline \text { Accounts written off as uncollectable during 2016 } & 14,000 \\\hline \text { Cash sales during } 2016 & 26,000\\\hline\end{array}$ Bad debts expense is estimated by the percentage of sales method.Management estimates that 5% of net credit sales will be uncollectable.The balance of the Allowance for doubtful debts after adjustment will be:

A) $8750
B) $10,250
C) $11,550
D) $7450