Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 3.5% of outstanding receivables will be uncollectible for 2016. The balance in Accounts Receivable is $243,000, and the Allowance for Doubtful Accounts has a credit balance of $4,300 before adjustments at year-end. The Bad Debt Expense for 2016 will be:Select one:a. $4,300b. $5,423c. $4,205 (243,000*3.5%)-4,300=4,205d. $8,505FeedbackYour answer is correct.The correct answer is: $4,205
CorrectMarks for this submission: 10.00/10.00.