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On December 3 1 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt

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 $98,600; Allowance for Doubtful Accounts, credit balance of $1,101. What amount should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?
Multiple Choice
$2,958
$1,857.
$1,101.
$965.
$4,059.
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