The following information concerns Complex, Inc. before the adjustments were made: Accounts receivable, 12/31/X7 $56,000 Sales during X7 $189,000 Accounts written off during X7 $4,500 Allowance for doubtful accounts, 12/31/X7 $1,500 credit Bad debt expense is determined using the percentage of receivables method. The company believes that 7% of receivables will never be collected. What would be the debit to bad debt expense in the adjusting entry on December 31, 20x7? Select one: O a. $2,420 O b. $4,500 O c. $3,920 O d. $11,730 O e. $13,230

The following information concerns Complex, Inc. before the adjustments were made: Bad debt expense is determined using the percentage of receivables method. The company believes that 7% of receivables will never be collected. What would be the debit to bad debt expense in the adjusting entry on December 31,207? Select one: a. $2,420 b. $4,500 c. $3,920 d. $11,730 e. $13,230