Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared an aging of accounts receivable and estimated that $6,500 of the $99,500 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $550 debit balance at year-end prior to adjustment. What is the amount of bad debt expense?

Multiple Choice

$550.

$5,950.

$6,500.

$7,050.