Graham Company uses the aging method in setting its allowance for doubtful receivables. Allowance for doubtful accounts prior to adjustment has a credit balance of $2,000.

Management estimates that due to the economic crisis, a higher level of allowance is necessary and decides that a $5,900 allowance is an appropriate amount at the year-end. The amount of expense to report on the income statement will be

a. $3,900.

c. $1,000.

b. $5,200.

d. $5,900.