JordiCo reported net credit sales of $450,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $875. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should JordiCo record as an estimate of Bad Debt Expense? Multiple Choice $3,500 $5,375 $2,625 $4,500