Craigmont Uses the Allowance Method to Account for Uncollectible Accounts

Multiple Choice

Craigmont uses the allowance method to account for uncollectible accounts.Its year-end unadjusted trial balance shows Accounts Receivable of $104,500,allowance for doubtful accounts of $665 (credit) and sales of $925,000.If uncollectible accounts are estimated to be 4% of accounts receivable,what is the amount of the bad debts expense adjusting entry?

A) $4,845
B) $4,180
C) $3,515
D) $3,700
E) $3,850