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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
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