Blackfly Ltd. had sales of $600,000 in 2017 , all made on credit terms. The company collected $25,000 from credit sales made in 2016, and at the end of 2017 its customers owed the company $50,000. If its accounting policy is to provide for bad debts on the basis of 1% of sales, the bad debt expense would be $7,500 $10,000 $5,000 $6,000 $5,500