8.The books of Tweed Company provided the following information:

Beginning balances:

Trade receivables $30,000 Allowances for doubtful accounts (a credit) $2,000

Transactions during the year:

Sales revenue (of which 1/3 were on credit) $1,800,000 Collections on trade receivables $590,000 Accounts written off as uncollectible $2,500

Past collection experience has indicated that 1% of credit sales normally is not collected. Therefore, an adjusting entry for bad debt expense should be made in the amount of

Multiple Choice $500. $2,500. $6,000. $6,500.