Yes We Van! is a moving company that generated $$700,000$ in sales during $2023,$$$350,000$ of which was on account. At the end of $2023$ its accounts receivable total $$80,000,$ with $$40,000$ outstanding $30$ days or less, $$32,000$ outstanding between $31$ and $60$ days, and $$8,000$ outstanding more than $60$ days. It uses the aging method for estimating uncollectible accounts, and expects that $8\%$ of accounts less than $30$ days outstanding will not be collected, $12\%$ of accounts outstanding $31$ to $60$ days will not be collected, and $31\%$ of accounts outstanding more than $60$ days will not be collected.

If the allowance for doubtful accounts has a $$500$ debit balance before recording bad debt expense for the year, what amount of bad debt expense will be recorded on $\frac{12}{31}\frac{?}{2023}$

Multiple Choice

$$0$

$$9,020$

$$9,520$

$$10,020$