A company has sales of $300 , 000 for the year. There is a debit balance of $1 , 400 in Allowance for Doubtful Accounts prior to adjusting for estimated bad debts. Its accounts receivable balance is $100 , 000 , aged as follows: What is bad debts expense for the year assuming the statement of financial position method is used? $5 , 000 $6 , 400 $7 , 800 None of the above