The following information is from the records of Banana Corporation: Accounts receivable, December 31, Year 5 Net credit sales for Year 5 Accounts written off as uncollectible during Year 5 16,000 Cash sales during Year 5 40,000 The company uses the direct write-off method for bad debts. What is the amount of bad debts expense? O $40,000 O $16,000 O $63,000 $85,000 (debit) 164,000 O $85,000

The following information is from the records of Banana Corporation: The company uses the direct write-off method for bad debts. What is the amount of bad debts expense? $40,000 $16,000 $63,000 $85,000