Chipmunk Company Reported Total Sales for the Current Year to Be

Chipmunk Company reported total sales for the current year to be $15,000,000, including cash sales of $3,000,000. Management estimates bad debts to be 5% of credit sales. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $60,000.
The ending balance of the Allowance for Doubtful Accounts after adjustment will be:

A) $360,000
B) $510,000
C) $660,000
D) $540,000