The following information is related to December 31, 2016 balances.

• Accounts receivable $3,150,000
• Allowance for doubtful accounts (credit) (270,000)
• Cash realizable value $2,880,000

During 2017 sales on account were $870,000 and collections on account were $516,000. Also during 2017 the company wrote off $48,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $324,000. Bad debt expense for 2017 is

$ 54,000.

$ 6,000.

$102,000.

$324,000.