Majestic Equipment Sales Company, which sells only on account had a $124,000 balance in its Accounts Receivable and a $5,400 credit balance in its Allowance for Doubtful Accounts on December 31, 2019. During 2020, the company's sales of equipment were $839.000 and its total cash collections from customers were $780,000. During the year, the company concluded that customers with accounts totalling $6,000 would be unable to pay, and wrote these receivables off. However, one of these customers subsequently made a payment of $850. (Note that this amount is not included in the cash collections noted above) At the end of 2020, management decided that it would use an estimate for bad debts of 1% of its credit sales. (c) What amount of bad debts expense would appear in the statement of income for the year ended December 31, 2020? Bad debts expense for year $ List of Accounts