Using the Percentage-Of-Receivables Basis, the Uncollectible Accounts for the Year

Multiple Choice

Using the percentage-of-receivables basis, the uncollectible accounts for the year is estimated to be $38,000. If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment, what is the amount of bad debt expense for the period?

A) $7,000
B) $31,000
C) $38,000
D) $45,000