Wellington has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $14 million. There is also a credit balance of $24,000 in the allowance for doubtful accounts. If the company estimates that 1% of its sales will be uncollectible, what will be the amount of bad debt expense recognized for the year?

a. 65,000

b. 140,000

c. 116,000

d. 14,000

e. 24,000