The Following Information Is from the 2017 Records of Albert

question 5

Multiple Choice

The following information is from the 2017 records of Albert Book Shop: $\begin{array}{|l|r|}\hline\text { Accounts receivable, December } 31,2017 & \$ 47,000 \text { (debit } \\\hline \text { Allowance for Bad Debts, December 31,2017 } \\\text { prior to adjustment }& 1,900 \text { (debit } \\\hline \text { Net credit sales for 2017 }& 180,000 \\\hline \text { Accounts written off as uncollectible during } \\2017 & 17,000 \\\hline \text { Cash sales during } 2017 & 28,000\\\hline \end{array}$ Bad debts expense is estimated by the aging-of-receivables method.Management estimates that $5,500 of accounts receivable will be uncollectible.Calculate the amount of bad debts expense for 2017.

• A)$5,500
• B)$7,400
• C)$3,600
• D)$5,750