Kenaston Company recorded $3,500,000 in credit sales in 2015 and prepared the following aging schedule of the $730,000 in accounts receivable as at December 31, 2020:

Days outstanding: 0-30; Balance: $350,000; Estimated % uncollectible: 1%.

Days outstanding: 31-60; Balance: $275,000; Estimated % uncollectible: 2%.

Days outstanding: 61-90; Balance: $67,500; Estimated % uncollectible: 5%.

Days outstanding: Over 90 days; Balance: $37,500; Estimated % uncollectible: 25%.

The balance in the allowance for doubtful accounts before year-end adjustments is CR $2,000. The bad debt expense for 2020 is:

Question 7 options:

	$21,750
	$23,750
	$19,750
	$35,000