Wrangler Incorporated uses the percentage of credit sales method to estimate Bad Debt Expense. At the end of the year, the companys unadjusted trial balance includes the following:

Accounts Receivable	$ 350,000
Allowance for Doubtful Accounts (credit balance)	300
Net Credit Sales	901,000

Wrangler has experienced bad debt losses of 0.6% of credit sales in prior periods. What is the Bad Debt Expense to be recorded for the year?

Multiple Choice

• $6,006

• $5,706

• $5,106

• $5,406