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 Freeman prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. How much is bad debt expense?

A. $9,000

B. $4,300

C. $4,240

D. $6,700

E. $5,500