Jakobi Jewelers estimates bad debt expense as 5% of sales. During 2020, Jakobi reported sales of $1,000,000 and recorded accounts receivables write-offs of $10,000. What is the bad debt expense for the year 2020?

 

                                

$60,000

 

                                

$50,000

 

                                

$10,000

 

                                

$40,000

 

                                

None of the answers are correct