10. Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $153,000 Credit sales, $453,000 Selling and administrative expenses, $113,000 Sales returns and allowances, $33,000 Gross profit, $493,000 Accounts receivable, $140,000 Sales discounts, $17,000 Allowance for doubtful accounts credit balance, $1,500 Flyer estimates bad debt expense assuming that 2.5% of credit sales have historically been uncollectible. How much is Flyers bad debt expense? Multiple Choice $9,825. $12,825. $11,325. $13,650.