The following accounts were abstracted from Roxy Co.’s unadjusted trial balance at December 31, 2006:

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Debit

Credit

Accounts receivable

$1,000,000

Allowance for uncollectible accounts

8,000

Net credit sales

$3,000,000

Roxy estimates that 3% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2006, the allowance for uncollectible accounts should have a credit balance of

  1. $90,000
  2. $82,000
  3. $38,000
  4. $30,000