During December, McComb Co. had net credit sales of $1,000,000. On December 1, 2017, the Allowance for Doubtful Accounts had a credit balance of $2,000. Experience indicates that the ending balance in the allowance for doubtful accounts should be 5% of receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $100,000, what amount should be reported as bad debt expense for the year? $2,000 o $3,000 $5,000 $7,000