CAA Company has the following data for the year ended December $31,$ Year $1,$ before adjusting

for bad debts:

Credit sales

Allowance for doubtful accounts

Accounts receivable

Sales returns and allowances

Estimated amount of uncollected accounts based on aging analysis

If the company estimates its bad debts at $2\%$ of net credit sales, what amount will be reported as

bad debt expense for Year $1?$

A$.$ $$50,000$

B$.$ $$12,400$

C$.$ $$49,600$

D$.$ $$49,000$