On January 1, 2015 a companys Accounts Receivable balance was $100,000, and the balance in the Allowance for Doubtful Accounts was a credit balance of $5,000. During 2015, the company recorded the following transactions:

Credit Sales $130,000

Collections from customers 110,000

Accounts written off 2,000

Collections on Accounts previously written off 1,000

(not included in the collections above)

Determine the amount of bad debt expense reported on the December 31, 2015 income statement

assuming amounts expected to be uncollectible are 5% of year-end accounts receivable.

		A.) $5,900
		B.) $5,850
		C.) $1,900
		D.) $1,850
		E.) $1,950