Quitzau Inc. follows the aging-of-receivables method in preparing its allowance for uncollectible accounts (allowance). The opening allowance balance as at January 1, 20X7, was a credit of $8,700. During the 20X7 fiscal year, a total of $7,860 was written off as uncollectible for the year and a total of $650 in previously written-off accounts was recovered.

Quitzau has the following accounts receivable balances as at December 31, 20X7, including a breakdown of the percentage estimated by management to be uncollectible:

Number of days

outstanding

Dollar amounts

Estimated %

uncollectible

0-30

$480,520

0.5%

31-60

187,600

1.8%

61-90

77,250

2.5%

Over 90

38,760

4.5%

What is the total amount of bad debt expense that Quitzau needs to record for the December 31, 20X7, fiscal year? Round to the nearest dollar.

a) $ 7,965

b) $ 8,615

c) $ 9,455

d) $10,945