Bad debts are estimated to be 5% of credit sales. This year, Your Company started with a $30,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $105,000 of service on account and $50,000 for cash. The company collected $124,000 cash from its account receivable. How much is the bad debts expense for the year? O $500 O $5,250 $1,500 O $6.200