Using the Aging Method of Accounts Receivable Method,$5,000 of the Company's

Multiple Choice

Using the aging method of accounts receivable method,$5,000 of the company's Accounts Receivable are estimated to be uncollectible.At the end of the year,the balance of Accounts Receivable is $100,000 and the unadjusted credit balance of the Allowance for Doubtful Accounts is $500.Credit sales during the year totaled $150,000.What is the current year's Bad Debt Expense?

A) $4,500
B) $5,000
C) $7,000
D) $7,500