Majestic Equipment Sales Company, which sells only on account, had a $136,000 balance in its Accounts Receivable and a $4,700 credit balance in its Allowance for Doubtful Accounts on December 31, 2019. During 2020, the company's sales of equipment were $821,000 and its total cash collections from customers were $783,000. During the year, the company concluded that customers with accounts totalling $6,300 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. e Your answer is incorrect. 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 $ e Textbook and Media Assistance Used e Textbook