The books of Fiona Corporation provided the following information:

Beginning balances:

Accounts receivable $ 50 000

Allowances for doubtful accounts (a credit) 3 000

Transactions during the year:

Sales revenue (of which 1/2 were on credit) 3 000 000

Collections on accounts receivable 980 000

Accounts written off as uncollectible 4 000

Past collection experience has indicated that 1% of credit sales normally are not collected.

Therefore, an adjusting entry for bad debt expense should be made in the amount of:

a. $47,000

b. $20,000

c. $15 000

d. $7,000

e. $1500