From the following information, determine the correct amount of doubtful accounts expense for Sams Inc. for the year 2023.

At December 31, 2023

Allowance for Doubtful Accounts $5,000 (credit) Sales 1,550,000 (credit)

Sales Returns and Allowances 50,000 (debit)

Accounts Receivable 380,000 (debit)

The basis for estimating doubtful accounts expense is 1.5% of Accounts

Receivable.

a. $10,700 c. $700

b. $22,500 d. $5,700