Michelle Company reports $\$ 345,000$ in credit sales and $\$ 267,500$ in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods?
A. $\$ 3,100$
B. $\$ 13,800$
C. $\$ 10,700$
D. $\$ 77,500$