Springtime Company Recorded $\$ 3,500,000$ In Credit Sales In $20 \mathrm { X } 1$

Multiple Choice

Springtime Company recorded $\$ 3,500,000$ in credit sales in $20 \mathrm { X } 1$ and prepared the following aging schedule of their $\$ 730,000$ in accounts receivable as at December $31,20 \mathrm { X } 1$ :

$\begin{array}{|l|r|r|}\hline \text { Days outstanding } & \text { Balance } & \text { Estimated percentage uncollectible } \\\hline 0-30 \text { days } & \$ 350,000 & 1 \% \\\hline 31-60 \text { days } & 275,000 & 2 \% \\\hline 61-90 \text { days } & 67,500 & 5 \% \\\hline \text { Over } 90 \text { days } & 37,500 & 25 \% \\\hline\end{array}$

The balance in their allowance for doubtful accounts before year-end adjustments is a $\$ 2,000$ credit.
-The bad debt expense for 20X1 is:

A) $21,750
B) $23,750
C) $19,750
D) $35,000