Question: Terra, Inc. estimates its bad debt expense using an estimate of the accounts that will not be collected. Credit sales in the current year were

Terra, Inc. estimates its bad debt expense using an estimate of the accounts that will not be collected. Credit sales in the current year were $537,321. Terra estimates $5,000 of accounts will be uncollectible, and the current Allowance for Bad Debts balance is a $1,000 credit. What amount should Terranova book for bad debt expenses?

A$6,000

B$4,000

C$5,000

D$1,000

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