At December 31, 2021, Montana Mining Equipment has gross accounts receivable of $127,000. There is a $10,000

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Question:

At December 31, 2021, Montana Mining Equipment has gross accounts receivable of $127,000. There is a $10,000 credit balance in the allowance for doubtful accounts. Bad debts are estimated to be 15% of accounts receivable. The allowance for doubtful accounts at December 31, 2021 is

$19,050.

$10,000.

$1,500.

$17,550.