Trainor Company Estimates Bad Debt Expense Using a Percentage of Credit

Trainor Company estimates bad debt expense using a percentage of credit sales 5%) . The company began its current year with an $8,500 balance in the allowance account. During the current year, $10,500 of accounts receivable were written off, and $1,200 of previously written off accounts were collected. Credit sales for the year were $255,000. The bad debt expense for the year was

A) $12,750
B) $11,550
C) $10,500
D) $8,500