AT&U Company
Data for the Year Ended December 31, Year

AT&U Company
Data for the year ended December 31, Year 1, are presented below:
$\begin{array}{llr} \text { Sales (credit) } &\$2,500,000\\ \text { Sales returns and allowances } &50,000\\ \text { Accounts receivable (December 31, Year 1) } &640,000\\ \text { Allowance for doubtful accounts} &\\ \text { (before adjustment at December 31, Year 1) } &20,000\\ \text {Estimated amount of uncollected accounts based on aging analysis } &45,000\\\end{array}$

-Refer to the figure AT&U Company.If the company uses the aging of accounts receivable approach to estimate its bad debts,what amount will be reported as bad debt expense for Year 1?

A) $20,000
B) $25,000
C) $45,000
D) $49,000