9. 20n January 1, 2015 Your Company had a $50,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $340,000 of service on account. The company collected $375,000 cash from account receivable. Bad debts are estimated to be 2% of sales on account. The amount of bad debts expense to recognize on the 2015 income statement is: A. $7,800. B. $8,500. C. $6,800. D. $7,500