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 $100,000; Allowance for Doubtful Accounts, credit balance of $600; credit sales of $420,000. What amount should be debited to Bad Debts Expense, assuming 1% of credit sales are estimated to be uncollectible?

Multiple Choice

• $5,770.

• $3,600.

• $5,660.

• $4,200.

• $4,800.