At the end of the year, Ryanes Company had the following information.

Credit sales for the year $870,000

Accounts receivable, beginning of year 140,000

Allowance for bad debts, beginning of year 54,000

Ryanes uses the percentage of sales method of estimating bad debt expense. During this year, bad debt expense was estimated to be 10% of credit sales for the year.

What is BAD DEBT EXPENSE for the year?

$140,000

$100,000

$94,000

$87,000

$54,000