The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debt expense.The company's management estimates that 2% of net credit sales will be uncollectible for the year 2015.Net credit sales for the year amounted to $250,000.What will be the balance of the Allowance for Bad Debts reported on the balance sheet at December 31, 2015?

• $7,000
• $7,275
• $5,285
• $3,075