Gross Accounts Receivable Is $21,000

Multiple Choice

Gross Accounts Receivable is $21,000. Allowance for Doubtful Accounts has a credit balance of $600. Net credit sales for the year are $132,000. In the past, 3% of credit sales had proved uncollectible, and an aging of the receivables indicates $1,800 is doubtful. Under the balance sheet approach, Bad Debts Expense for the year is:

A) $2,400.
B) $4,560.
C) $3,960.
D) $1,200.