Crimson Inc. recorded credit sales of $779,000, of which $560,000 is not yet due, $120,000 is past due for up to 180 days, and $99,000 is past due for more than 180 days. Under the aging of receivables method, Crimson Inc. expects it will not collect 1% of the amount not yet due, 16% of the amount past due for up to 180 days, and 20% of the amount past due for more than 180 days. The allowance account had a debit balance of $2,600 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account?
a. $60,240
b. $77,040
c. $73,140
d. $28,500
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