RyTronics uses the percentage of receivables method for estimating bad debts expense. The Accounts Receivable balance is $100,000 at year-end and the total credit sales were $800,000. Management estimates that 4% of receivables will be uncollectible. What amount of bad debt expense will be recorded if the Allowance for Doubtful Accounts has a balance of $800 before adjustment?

$4,800.

$3,200.

$4,000.

The answer cannot be determined based on the information provided.