2. Maxwell Company estimates bad debt expense using a percentage of credit sales (3%). During the current year, the company began its current year with a $9,500 balance in the allowance account, $10,000 of accounts receivable were written off, and $1,200 of previously written off accounts were collected. Credit sales for the year were $200,000. The bad debt expense for the year was

a.	$5,900
b.	$5,500
c.	$6,600
d.	$6,000