Upon Completing an Aging Analysis of Accounts Receivable, the Accountant

Multiple Choice

Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared and aging of accounts receivable and estimated that $5,000 of the $98,000 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $400 debit balance at year-end prior to adjustment. How much is bad debt expense?

A) $5,000.
B) $5,400.
C) $4,600.
D) $400.