ABC Company's trial balance shows the following data at the end of the year: Accounts Receivable - $400,000.00 Allowance for Bad Debt - $2,500.00 Cash Sales - $400,000.00 Sales on Account - $200,000.00 Credit Card Sales - $600,000.00 Bad Debts Expense - $10,000.00 If ABC Company uses the Percentage of Sales Method at 4% of Sales subject to loss, the debit to Bad Debts Expense will be...

A. 8,000.00 B. 13,500.00 C. 24,000.00 D. 32,000.00 E. 48,000.00