Lowe$$s Company uses the allowance method for recording its expected credit losses. It estimates bad debts at $2\%$ of credit sales, which were $$1,080,000$ during the year. On December $31,$ the Accounts Receivable balance was $$180,000,$ and the Allowance for Doubtful Accounts had a credit balance of $$14,640$ before adjustments.

What is the amount of Bad Debt Expense Lowe$$s Company will report on their Income Statement this year?

Select one:

a$.$ $$3,307$

b$.$ $$21,307$

c$.$ $$14,640$

d$.$ $$3,600$

e$.$ $$21,600$