Data for the year ended December 31 are presented below:
Sales (credit)
Sales returns and allowances
Accounts Receivable (December 31)
Allowance for Doubtful Accounts
(Before adjustment at December 31)
Estimated amount of uncollected accounts based on aging analysis
$2,500,000
50,000
640,000
20,000
45,000
If the company uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense?
$25,000
$45,000
$20,000
$65,000