Mills Corporation's balance sheet included the following information:    Accounts Receivable$500,000 Less: Allowance for Doubtful Accounts 65,000 Accounts Receivable, Net of Allowance$435,000  If the Allowance account had a credit balance of $27,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year, what was the amount of Bad Debt Expense recognized during the year?

A. $27,500
B. $32,500
C. $37,500
D. $65,000


Answer: C

Business

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