Wellington Corp

Wellington Corp.has outstanding accounts receivable totaling $2.54 million as of December 31 and sales on credit during the year of $12.8 million.There is also a debit balance of $6,000 in the allowance for doubtful accounts.If the company estimates that 1% of its net credit sales will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

A) $ 25,400.
B) $ 31,400.
C) $122,000.
D) $134,000.