Gross Accounts Receivable Is $20,000

Multiple Choice

Gross Accounts Receivable is $20,000.Allowance for Doubtful Accounts has a credit balance of $400.Net credit sales for the year are $125,000.In the past,2% of credit sales had proved uncollectible,and an aging of the receivables indicates $1,500 is doubtful.Under the income statement approach,Bad Debts Expense for the year is:

A) $1,900.
B) $2,900
C) $2,500.
D) $1,100.