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Using the aging-of-accounts-receivable method to estimate uncollectible receivables, Records Management Corp estimates that $4,000 of its accounts receivable will be Doubtful. Prior to adjustment, the

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Using the aging-of-accounts-receivable method to estimate uncollectible receivables, Records Management Corp estimates that $4,000 of its accounts receivable will be Doubtful. Prior to adjustment, the Allowance for Doubtful Accounts has a credit balance of $1,000. Bad debt expense to be reported on the income statement is: Select one: a. $3,000 b. $4,000 c. $5,000 d. $1,000

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