On January 1,2017,Accounts Receivable and Allowance for Uncollectible Accounts for Darius

Multiple Choice

On January 1,2017,Accounts Receivable and Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000 and $550,respectively.During the year,the company reported $70,000 of credit sales.There were $400 of receivables written off as uncollectible in 2017.Cash collections of receivables amounted to $74,700.The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance. ​
The amount of bad debts expense recognized in the 2017 income statement will be:

A) $545.
B) $595.
C) $745.
D) $795.