Pots-R-Us deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following information was extracted from the accounting records at 30 June 2020:

$

Credit Sales 552,000

Sales returns and allowances 37,900

Cash collected 319,120

Debts to be written off 4,022

Allowance for Doubtful Debts 1 July 2019 2,645 Cr

Assume that Pots-R-Us completed an age analysis of its accounts receivable and determined that $10,320 was estimated to be uncollectable. The amount of bad debts expense for the year ended 30 June 2020 would be:

Select one:

a.

$12,965

b.

$4,022

c.

$7,675

d.

$2,645

e.

$10,320