Rincon Corporation uses the percentage of receivables method for estimating bad debts expense. The Accounts Receivable balance is $135,000 at year-end. Management estimates that 3% of receivables will be uncollectible. What amount of bad debt expense will be recorded if the Allowance for Doubtful Accounts has a balance of $780 before adjustment?

a)

$3,200.

b)	The answer cannot be determined based on the information provided.

c)

$3,270.

d)

$4,620.