Rusch Corporation Had a 1/1/08 Balance in the Allowance for Doubtful

Rusch Corporation had a 1/1/08 balance in the Allowance for Doubtful Accounts of $12,000. During 2008, it wrote off $8,640 of accounts and collected $2,520 on accounts previously written off. The balance in Accounts Receivable was $240,000 at 1/1 and $288,000 at 12/31. At 12/31/08, Rusch estimates that 5% of accounts receivable will prove to be uncollectible. What should Rusch report as its Allowance for Doubtful Accounts at 12/31/08?

A) $5,760
B) $5,880
C) $8,280
D) $14,400