The Data Presented Below Is for Mellon Corporation for the Year

The data presented below is for Mellon Corporation for the year ended December 31, 2016: $\begin{array}{lr}\text { Sales (100\% on credit) } & \$ 1,500,000 \\\text { Sales returns } & 60,000 \\\text { Accounts Receivable (December 31, 2016) } & 250,000 \\\text { Allowance for Doubtful Accounts [Credit B al ance] (Before adjustment at December } & \\31,2016 &3,000 \\\text { Estimated amount of uncollectible accounts based on an aging analysis }&31,000\\\end{array}$
-Refer to the data for Mellon Corporation. ?
If Mellon estimates its bad debts at 2% of net credit sales, what amount will be reported as bad debt expense for 2016?

A) $25,800
B) $27,000
C) $28,800
D) $30,000