Ralston Hardware Reported the Following Items for 2014 Experience Indicates That 3% of the Outstanding Accounts Receivable at l

Multiple Choice

Ralston Hardware reported the following items for 2014: $$\begin{array} { l c } \text { Accounts receivable balance, January 1, 2014 } & \$ 125,000 \\\text { Allowance for doubtful accounts balance, January 1, 2014 } & 3,000 \mathrm { CR } . \\\text { Total credit sales during 2014 } & 653,000 \\\text { Total collections on accounts receivable during 2014 } & 567,000\end{array}$$ Experience indicates that 3% of the outstanding accounts receivable at the end of each year ultimately will be uncollectible.What should be the December 31, 2014, bad debt expense using the percentage- of-receivables method?

A) $3,330
B) $6,330
C) $9,330
D) $19,590