Thompson Corporation's Unadjusted Trial Balance Includes the Following Balances (Assume $\quad \quad \quad \quad \quad \$ 1,865,000$

Multiple Choice

Thompson Corporation's unadjusted trial balance includes the following balances (assume normal balances) : - Accounts receivable $\quad \quad \quad \quad \quad \$ 1,865,000$
- Allowance for doubtful accounts $\quad \$ 35,500$ Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

A) $119,400
B) $76,400
C) $74,270
D) $114,030