A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:

Accounts Receivable

Net Sales

$$352,000$ debit

$797,000$ credit

All sales are made on credit. Based on past experience, the company estimates that $0\mathrm{.}5\%$ of net sales are uncollectible. What amount should be debited to Bad Debts Expense when the year$-$end adjusting entry is prepared?

Multiple Choice

$$3,985$

$$4,615$

$$1,130$