The following information is related to December 31, 2016 balances.
Accounts receivable $3,150,000
Allowance for doubtful accounts (credit) (270,000)
Cash realizable value $2,880,000
During 2017 sales on account were $870,000 and collections on account were $516,000. Also in 2017, the company wrote off $48,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $324,000.
Bad debt expense for 2017 is:
a. $102,000.
b. $54,000.
c. $324,000.
d. $6,000.