Problem
The following information is available for Oreo Company:
Allowance for Doubtful Accounts at December 31, 2013 $ 4,000
Credit Sales during 2014 $300,000
Accounts Receivable deemed worthless and written off during 2014 $4,500
As a result of a review and aging of Accounts Receivable in early January 2015, however, it has been determined that an Allowance For Doubtful Accounts of $5,500 is required at December 31, 2014. What amount should Oreo record as Bad Debt Expense for calendar 2014?
a 5500
b 6000
c 6500
d 10000.