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 0.5% of sales,what is the amount of the bad debts expense adjusting entry?

A) $4,625
B) $3,960
C) $5,290
D) $4,750
E) $4,825