Libre, Incorporated has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $109,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $950. Net credit sales during the year were $168,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year?

Multiple Choice

• $5,450

• $8,900

• $8,400

• $7,900