Patriots uses the percent-of- receivables method to determine bad debts expense. Given the following information, determine the amount of bad debts expense. Balance in Accounts Receivable Balance in Allowance for Bad Debts (credit) Net Credit Sales Estimated percent of uncollectible receivables A. $20,500 B. $2,050 C. $11,500 D. $1,750 $41,000 $300 $230,000 5%