At Year-End, Chief Company Has a Balance of $10,000 in Accounts

Multiple Choice

At year-end, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is more than 30 days overdue. Chief has a credit balance of $100 in the allowance for doubtful accounts before any year-end adjustments. Chief estimates that 1% of current accounts and 10% of accounts over thirty days are uncollectible. How much is bad debt expense?

A) $90.
B) $190.
C) $290.
D) $100.