Sunland Corporation had a 1/1/25 balance in the Allowance for Doubtful Accounts of $38500. During 2025, it wrote off $27600 of accounts and collected $7850 on accounts previously written off. The balance in Accounts Receivable was $735000 at 1/1 and $875000 at 12/31. At 12/31/25, Sunland estimates that 5% of accounts receivable will prove to be uncollectible. What is bad debt expense for 2025? O $43750. O $32850. O $5250. O $25000.

Sunland Corporation had a 1/1/25 balance in the Allowance for Doubtful Accounts of $38500. During 2025 , it wrote off $27600 of accounts and collected $7850 on accounts previously written off. The balance in Accounts Receivable was $735000 at 1/1 and $875000 at 12/31. At 12/31/25, Sunland estimates that 5% of accounts recelvable will prove to be uncollectible. What is bad debt expense for 2025 ? $43750. $32850. $5250. $25000