Saint John Industries Uses the Percentage of Credit Sales Method

Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense.The company reported net credit sales of $500,000 during the year.Saint John has experienced bad debt losses of 3% of credit sales in prior periods.At the beginning of the year,Saint John has a credit balance in its Allowance for Doubtful Accounts of $4,000.No write-offs or recoveries were recorded during the year.What amount of Bad Debt Expense should Saint John recognize for the year?

A) $6,000
B) $9,000
C) $15,000
D) $21,000