Milo Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $100,000, and management estimates 4% will be uncollectible. Allowance for Doubtful Accounts prior to adjustment has a credit balance of $3,000. The amount of expense to report on the income statement will be A. $7,000. B. $4,000 C. $6,000 D. $1,500