The Following Accounts Were Included on Mali Co Mali Estimates That 1

Multiple Choice

The following accounts were included on Mali Co.'s unadjusted trial balance at December 31, 2020:
$\begin{array}{llcc} \text { } & \underline{\text { Debit }} & \underline{ \text { Credit} } \\ \text { Accounts receivable.} &\$850,000&\\ \text {Allowance for doubtful accounts } &11,000&\\ \text { Net credit sales. } &&\$2,950,000\\\end{array}$

Mali estimates that 1.5 % of the gross accounts receivable will become uncollectible. After the proper adjustment at December 31, 2020, the allowance for doubtful accounts should have a credit balance of

A) $23,750.
B) $12,750.
C) $11,000.
D) $ 1,750.