Lannister Inc. uses the percentage-of-sales method to estima…

Lannister Inc. uses the percentage-of-sales method to estimate uncollectible receivable balances. Net credit sales for the current year amount to $5,000,000 and management estimates 2.5% of net credit sales will be uncollectible. Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $16,000. There were no write-offs of uncollectible accounts. After all necessary adjusting entries are posted, the balance in Allowance for Uncollectible Accounts will be: