Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $5,000,000, and management estimates 3% will be uncollectible. Allowance for Doubtful Accounts prior to adjustment has a credit balance of $16,000. The amount of expense reported on the income statement will be:

$16,000

$116,000

$100,000

$150,000