how to get 77,100?

Question 9 The Farr Company?s allowance for doubtful accounts has a balance of $74,500 cr. at January 1, 20x5. The following transactions occurred during the year 20x5: Mark 000 out of Accounts written off $66,000 Recoveries of previously written off accounts 8,400 Flag questionAccounts receivable at December 31, 20x5 - 0-30 days $1,150,000 30-59 days 465,000 60-89 days 125,000 Over 90 days 56,000The Farr Company controller estimated that 1 % of all accounts in the 0-30 day category will become uncollectible, 5% of accounts in the 30-59 day category, 25% of accounts in the 60-89 day category and 50% of accounts greater than 90 days. What is the bad debt expense for the year ended December 31, 20x5? Select one: $19,500 X $38,100 $77,100 $57,600 Check The correct answer is: $77,100