A companys Accounts Receivable balance at its December 31 year-end is $489,300, and its Allowance for Doubtful

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A company’s Accounts Receivable balance at its December 31 year-end is $489,300, and its Allowance for Doubtful Accounts has a debit balance of $554 before year-end adjustment. Its net sales are $1,300,000. It estimates that 6% of outstanding accounts receivable are uncollectible. What amount of bad debts expense is recorded at December 31?

a. $29,912

b. $28,804

c. $78,000

d. $29,358

e. $554

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