On December $31$ of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit

balance of $$98,100$; Allowance for Doubtful Accounts, credit balance of $$1,051.$ What amount should be debited to Bad Debts Expense, assuming $4\%$ of outstanding accounts receivable at the

end of the current year are estimated to be uncollectible?

Multiple Choice

$$1,981.$

$$4,975.$

$$2,873.$

$$1,051.$

$$3,924.$