Melannie Inc. has sales of $300,000 for the year. There is a debit balance of $1,400 in Allowance for Doubtful Accounts prior to adjusting for estimated bad debts. Its accounts receivable balance is $100,000, aged as follows: Age (days) 1-30 31-60 61-90 91-120 Over 120 Totals Accounts receivable $-0- 50,000 20,000 18,000 12,000 $100,000 Estimated bad debt percentage .5% 1% 3% 5% 25% What is bad debts expense for the year assuming the statement of financial position method is used? O A) $5000 B) $6400 C) $7800 D) None of the above