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For the year ended December 31, 2020, Absolute Inc. estimated its allowance for doubtful accounts using the year-end aging of accounts receivable. Additional information for

For the year ended December 31, 2020, Absolute Inc. estimated its allowance for doubtful accounts using the year-end aging of accounts receivable. Additional information for calendar 2020 follows:

Allowance for doubtful accounts, beginning...........................$44,000

Estimated uncollectible accounts during 2020

(1.5% of credit sales of $5,000,000)............................75,000

Uncollectible accounts written off during year.........................88,000

Uncollectible accounts recovered during year..........................24,000

Estimated uncollectible accounts per year-end aging.............118,000

For the year ended December 31, 2020, Absolute Inc.'s bad debt expense should be

a) Debit $63,000.

b) Debit $55,000.

c) Credit $55,000.

d) Credit $85,000.

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