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

Burnett Corporation had a 1/1/08 balance in the Allowance for Doubtful Accounts of $15,000. During 2008, it wrote off $10,800 of accounts and collected $3,150 on accounts previously written off. The balance in Accounts Receivable was $300,000 at 1/1 and $360,000 at 12/31. At 12/31/08, Burnett estimates that 5% of accounts receivable will prove to be uncollectible. What should Burnett report as its Allowance for Doubtful Accounts at 12/31/08?

A) $7,200
B) $7,350
C) $10,350
D) $18,000