White Christmas Inc reported a credit balance in allowance for doubtful accounts before adjusting entries on December 31, 2022, of $ 900. The company uses 3% of accounts receivables as its method of estimating doubtful accounts expense. Ending accounts receivables balance is $ 46,000. What is the doubtful accounts expense amount that will debited in the adjusting entry?

Question options:

a)

1380

b)

480

c)

2280

d)

420