Sheridan Company has a debit balance of $$5080$ in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, Sheridan estimates that $$70500$ of its receivables are uncollectible. The amount of bad debt expense which should be reported for the year is:

$$5080.$

$$75580.$

$$65420.$

$$70500.$