The Allowance for Doubtful Accounts account has a credit balance of $4000 before the adjusting entry for bad debts expense. The company's management estimates that 3% of net credit sales will be uncollectible for the year Year 4. Net credit sales for the year amounted to $250,000. What is the amount of Bad Debts Expense reported on the income statement for Year 4? O $3500 $11,500 O $3750 O $7500