Bad debts are estimated to be 4% of credit sales. This year, Your Company started with a $4,000 balance in the Accounts Receivable account and a $2,500 balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $36,000 of service on account and $50,000 for cash. The company collected $24,000 cash from its account receivable. How much is the bad debts expense for the year? $1,440. $ 960. $ 640. O $160.

Bad debts are estimated to be 4% of credit sales. This year, Your Company started with a $4,000 balance in the Accounts Receivable account and a \$2,500 balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $36,000 of service on account and $50,000 for cash. The company collected $24,000 cash from its account receivable. How much is the bad debts expense for the year? $1,440, $960. $640. $160