On January 1,2019 Your Company had a $8,500 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $65,000 of service on account. The company collected $37,000 cash from account receivable. Bad debts are estimated to be 4% of sales on account. How much bad debts expense will be recognize on the 2019 income statement? 52.600. 51,480 52,940. $1,460