On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $97,800; Allowance for Doubtful Accounts, credit balance of $1021. What amount should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?
A. $1021.
B. $3955.
C. $1913.
D. $2934.
E. $1020.
Answer: C
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