At the beginning of 2019, Patriots Company has the following account balances:
Accounts Receivable $40,000 (Debit)
Allowance for Bad Debts $7000 (Credit)
Bad Debts Expense $0
During the year, credit sales amounted to $810,000. Cash collected on credit sales amounted to $790,000, and $17,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The amount of bad debts expense for 2019 is ________.
A) $20,250
B) $41,000
C) $17,000
D) $10,250
A) $20,250
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