ABC, Inc. reports annual credit sales of $390,000 and accounts receivable balance of $85,000 with an allowance for bad debt of $5,000. ABC uses the income statement method to report bad debt estimation. If the estimation percentage is 3.5%, what is the estimated bad debt expense for the year? A B C $ 2,975 $ 2,992 $29,925 $31,650 Somm

ABC, Inc, reports annual credit sales of $390,000 and accounts receivable balance of $85,000 with an allowance for bad debt of $5,000. ABC uses the income statement method to report bad debt estimation. If the estimation percentage is 3.5%, what is the estimated bad debt expense for the year? $2,975 $2,992 $29,925 (D) $31,650