Plasma Inc

Multiple Choice

Plasma Inc. ,has net credit sales of $500,000 during the year.Based on historical information,Plasma estimates that 2% of net credit sales result in bad debts.At the beginning of the year,Plasma has a credit balance in its Allowance for Doubtful Accounts of $4,000.What amount of bad debt expense should Plasma recognize for the year,assuming no specific customer accounts were written off?

A) $4,000.
B) $6,000.
C) $10,000.
D) $14,000.