Accounts receivable 12/31/xx $200,000

credit sales during 20xx $130,000

Allowance for doubtful account before adjustment 1500 credit

The experience of the Estrella company is that 5% of credit sales are lost due to bad debts. The adjustment you will make as of December 31, 20XX to recognize Bad Debts Expenses if you use the percentage of sales method will be for the amount of

a.$ 3,000.

b.$ 6,500.

c.$ 5,000.

d.$10,000.