On January 1, 2021 Your Company had a $7,500 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $95,000 of service on account. The company collected $76,000 cash from account receivable. Bad debts are estimated to be 2% of sales on account. How much bad debts expense will be recognize on the 2021 income statement?

A $1,900

B $530

C $1,520

C $150