On December 31 of the Current Year,the Unadjusted Trial Balance

Multiple Choice

On December 31 of the current year,the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable,debit balance of $100,000; Allowance for Doubtful Accounts,credit balance of $600; credit sales of $420,000.What amount should be debited to Bad Debts Expense,assuming 1% of credit sales are estimated to be uncollectible?

A) $4,200.
B) $4,800.
C) $3,600.
D) $5,770.
E) $5,660.