Flyer Company Has Provided the Following Information

Multiple Choice

Flyer Company has provided the following information:
Cash sales,$150,000
Credit sales,$450,000
Selling and administrative expenses,$110,000
Sales returns and allowances,$30,000
Gross profit,$290,000
Accounts receivable,$110,000
Sales discounts,$14,000
Allowance for doubtful accounts credit balance,$1,200
How much is Flyer's bad debt expense assuming that 1.5% of credit sales have historically been uncollectible.

A) $7,950
B) $6,750
C) $5,550
D) $7,800