Hello, so Im having trouble understanding how to find the estimated Bad Debt Expense when using the aging method. I've solved another problem but with this question the word debit balance of ADA $500 is confusing me. Heres the question. Your time to give a short explanation is much appreciated. Thank You.

Wheeling Inc. uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $5,000. At the end of the year, the balance of Accounts Receivable is $100,000 and the unadjusted debit balance of the Allowance for Doubtful Accounts is $500. Credit sales during the year totaled $150,000. What is the estimated Bad Debt Expense for the current year?

$4,500$5,000$5,500$7,000