QUESTION 3 Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2016, net credit sales totaled $4,200,000, and the estimated bad debt percentage is 1.25%. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2016 and $42,000, after adjusting entries, at the end of 2016. Question What is bad debt expense for 2016? $40,000 $42.000 $50,500 O $52.500