Using the allowance method, what is the correct amount of a company's bad debt expense for the year, given the above information?

Consider the following information regarding the company's history: Accounts Receivables total $950,000 Estimates show that 4% of its receivables will be uncollectible No balance in the Allowance account Using the allowance method, what is the correct amount of a company's bad debt expense for the year, given the above information? $38,000 $36,480 $42,750 $39,520