Bailey Inc.'s books revealed the following data for 2020 after all adjustments were made: Cash sales Sales returns (on credit sales) Allowance for doubtful accounts (credit balance) Credit sales Accounts receivable $825,000 35,000 3,800 575,000 168,000 Bailey estimates bad debt expense based on 2% of net credit sales. 87. The bad debt expense for 2020 was a) $10,800. b) $11,500. c) $14,600. d) $3,360.