Tulsa Company uses the percent-of-receivables method to determine bad debts expense. Given the following information, determine the amount of bad debts expense. Balance in Accounts Receivable $780,000 Balance in Allowance for Bad Debts (credit) $8,000 Net Credit Sales $810,000 Estimated percent of uncollectible receivables 5% O A $40,500 OB. $32,500 OC $31,000 D. $39,000