Maine Corporations unadjusted trial balance includes the following balances (assume normal balances):

Accounts Receivable $850,000

Allowance for Doubtful Accounts 18,000

Bad debts are estimated to be 5% of outstanding receivables. What amount of bad debt expense will the company record?

Select one:

a. $18,000

b. $41,600

c. $24,500

d. $42,500