The Following Information Is Available for Pirate Company: Allowance for Doubtful

Multiple Choice

The following information is available for Pirate Company: Allowance for Doubtful Accounts at December 31, 2020.................................... $\$ 7,000$
Credit Sales during 2021 .......................................................................................270,000
Accounts Receivable deemed worthless and written off during 2021...................2,800
As a result of a review and aging of Accounts Receivable in early January 2022, however, it has been determined that an Allowance For Doubtful Accounts of $7,500 is required at December 31, 2021. What amount should Pirate record as bad debt expense for calendar 2021?

A) $4,200
B) $3,300
C) $7,500
D) $74,000