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?

A. $2,250

B. $7,800

C. $6,750

D. $7,950

E. $5,550