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Accounts receivable at the end of the month is Tk 80,000. Bad debts are expected to be 5% of accounts receivable. If Allowance for Doubtful Accounts has a credit balance of Tk 1,000 before adjustment, what is the balance after adjustment?
Tk 2,000
Tk 3,000
Tk 4,000
Tk 5,000
None of these