Karim Ltd.(KL), uses allowance method to record bad debt expenses and estimates that 5% of the accounts receivable as uncollectible. The opening balance in allowance for doubtful account was $5,000. During the year KL wrote off customers' balances of $3,000 and also recovered bad debts of $1,500. The closing accounts receivables were $110,000. The bad debt expense for the year was A. $2,000 B. $5,500 C. $1,000 D. $4,000 E. $3,500 F. $500