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On its December 31, Year 2 balance sheet, Red Rock Candle Company reported accounts receivable $855,000, net of an allowance for doubtful accounts of $45,000. On December 31, Year 3, Red Rocks b-i" ance sheet showed gross accounts receivable of $922,000, and Red Rocks income statement reported sales of $3,000,000. During the year, accounts receivable of $35,000 were written off and $18,000 were recovered Based on past experience, 5% of Red Rock's ending accounts receivable are uncollectible. How much should Red Rock report as bad debt expense on its Year 3 income statement? a. $18, 100 b. $35,000 c. $46, 100 d. $150,000