Dal Inc sells T-shirts for $25 each. All customers purchase T-shirts on account. Dal Inc estimates that 2% of its outstanding accounts receivables will be uncollectible during 2020. The unadjusted balance in Allowance for Doubtful Accounts on December 31, 2020 is credit 4,200 and the account receivable balance is $205,000. Dal Inc decided to write off an account, $1,500 on December 31. What is the amount of the year's bad debt expense, after Dal Inc completes the write off and the adjusting entry to record uncollectible amounts?

Question 25 options:

	$1,400
	$2,900
	$1,370
	$4,100
	$1,500