Winston Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $10 million. There is also a credit balance of $15,000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?

Options:

A. 600,000

B. 255,000

C. 585,000

D. 270,000