As of January 1, 2021, Barley Co. had a credit balance of $531,000 in its allowance for uncollectible accounts. Based on experience, 3% of Barleys gross accounts receivable have been uncollectible. During 2021, Barley wrote off $661,000 of accounts receivable. Barleys gross accounts receivable as December 31, 2021 is $18,550,000. How much bad debt expense should Barley record for 2021?

rev: 10_27_2020_QC_CS-238222

Multiple Choice

• $426,500.

• $686,500.

• $1,087,500.

• $556,500.