Emerz Corporation Had Sales of $850,000,of Which 20% Were Cash

Emerz Corporation had sales of $850,000,of which 20% were cash sales.As of year-end,the balance in the Allowance for Uncollectible Accounts before adjusting for bad debts was a $400 debit.The company estimates bad debts as 10% of ending accounts receivable or 1.5% of credit sales.What is the balance in the Allowance for Uncollectible Accounts after Emerz Corporation estimates bad debts using a percentage of credit sales?

A) $9,800
B) $10,200
C) $10,600
D) $12,350
E) $12,750