Using the following information:

12/31/19

Accounts receivable HK$525,000

Allowance (40,000)

Cash realizable value HK$485,000

During 2020, sales on account were HK$145,000 and collections on account were HK$100,000. Also during 2020, the company wrote off HK$5,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at HK$45,000.

Bad debt expense for 2020 is?

Select one alternative:

• HK$5,000
• HK$45,000
• HK$35,000
• HK$10,000