Prior to the adjusting entry for bad debt expense, Lierman, Inc.'s balances for accounts receivable and allowances for doubtful accounts were $720,000 (debit) and $2,200 (credit), respectively. After the bad debt expense entry was posted, the net realizable value of accounts receivable was $653,000. Bad debt expense for the year was $67,800 O $69,200 O $64,800 $67,000