Creek Company uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of Creek Company:

Cash sales

$$300,000$

$1,200,000$

$1,500,000$

$7,500$

$3\%$

Credit sales

Total sales

$1,500,000$

Credit balance in the Allowance for Doubtful Accounts

$7,500$

Bad debt loss rate

$3\%$

What is the estimated bad debt expense?

a $$36,000$

b $$37,500$

c $$43,500$

d $$45,000$