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?

A. $2,958.

B. $1,857.

C. $4,059.

D. $1,101.

E. $965.