The Following Information Is from the 2016 Records of Armand

Multiple Choice

The following information is from the 2016 records of Armand Camera Shop: $\begin{array}{|l|l|}\hline\text { Accounts receivable, } 31 \text { December } 2016 & \$ 45,000 \text { (debit) } \\\hline \text { Allowance for doubtful debts, 31 December 2016 } & \\\text { prior to adjustment } & 1500 \text { (debit) } \\\hline \text { Net credit sales for 2016 } & 178,000 \\\hline \text { Accounts written off as uncollectable during 2016 } & 16,000 \\\hline \text { Cash sales during 2016 } & 30,000\\\hline\end{array}$ Bad debts expense is estimated by the percentage of sales method.The management estimates that 4% of net credit sales will be uncollectable.Calculate the amount of bad debts expense for 2016.

A) $5320
B) $7120
C) $5620
D) $8320