Question: In 2014, Lawrence Company had gross sales of $1,010,000 on account and granted sales discounts of $10,000. On January 1, 2014, the Allowance for Doubtful Accounts had a credit balance of $20,000. During 2014, $30,000 of uncollectible accounts receivable were written off. Past experiences indicate that 3% of net credit sales become uncollectible. Using the percentage of credit sales method, what would be the adjusted balance in the Allowance for Doubtful Accounts at December 31, 2014?