Morton's Industries has outstanding accounts receivable totaling $12 million as of December 31 and sales on credit during the year of $52 million. There is also a credit balance of $63,000 in the allowance for doubtful accounts. If the company estimates that 2% of credit sales will be uncollectible, what will be the amount of bad debt expense recognized for the year? a. 1,040,000 b. 1,103,000 c. 1,920,000 d. 977,000