On December 31 of the Current Year, the Unadjusted Trial

Multiple Choice

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $95,250; Allowance for Doubtful Accounts, credit balance of $921. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

A) $6,636.
B) $5,715.
C) $5,660.
D) $4,794.
E) $5,770.