Ribbons Company uses the percentage of credit sales approach to estimate its expected credit losses. It estimates its losses at 1 percent of credit sales, which were $377,500 during the year. The Accounts Receivable balance was $12,500 and the Allowance for Uncollectible Accounts had an existing negative balance of $500 at year-end. (i.e. the bad debt expense had been under estimated in the prior period). What is the bad debt expense for the year? Select one: A. $4,275 B. $3,275 C. $3,775 D. $1,625