Chiller Company Has Credit Sales of $5 Assuming the Company Uses the Percent of Sales Method,what Is

Multiple Choice

Chiller Company has credit sales of $5.60 million for year 2010.Chiller estimates that 1.32% of the credit sales will not be collected.Historically,4% of outstanding accounts receivable is uncollectible.On December 31,2010,the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $3,561.Chiller prepares a schedule of its December 31,2010,accounts receivable by age.Based on past experience,it estimates the percent of receivables in each age category that will become uncollectible.This information is summarized here:
$$\begin{array} { c l c } \begin{array} { c } \text { December 31,2010 } \\\text { Accounts Receivable }\end{array} &{ \begin{array} { c } \text { Age of Accounts } \\\text { Receivable }\end{array} } & \begin{array} { c } \text { Expected Percent } \\\text { Uncollectible }\end{array} \\\hline 1,095,000 & \text { Not yet due } & 0.85 \% \\322,550 & \text { 1 to 30 days past due } & 1.42 \\84,700 & \text { 31 to 60 days past due } & 7.60 \\50,420 & \text { 61 to 90 days past due } & 42.50 \\12,500 & \text { Over 90 days past due } & 81.00\end{array}$$
Assuming the company uses the percent of sales method,what is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

A) $55,439.41
B) $73,920.00
C) $48,317.41
D) $70,359.00
E) $66,167.80