A company has provided the following information prior to any year-end bad debt adjustment: - Cash sales, $150,000 - Credit sales, $450,000 - Accounts receivable, $110.000 - Allowance for doubtful accounts credit balance, $1,200 Fairly estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. How much is bad debt expense? $7.950 56,750 55.550 $7.800 $2.250