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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