The Following Information Is from the 2016 Records of Armand

The following information is from the 2016 records of Armand Camera Shop:
$$\begin{array} { | l | l | } \hline \text { Accounts receivable, 31 December 2016 }&\$ 45,000 \text { (debit) } \\\hline \text { Allowance for doubtfu l debts, 31 December 2016 } \\\text { prior to adjustment } & 1500 \text { (debit) } \\ \hline \text { Net credit sales for 2016 } & 178,000\\ \hline \text { Accounts written off as uncollectable during 2016 } & 16,000 \\\hline \text { Cash sales during 2016 } & 30,000 \\\hline\end{array}$$
Bad debts expense is estimated by the percentage of sales method.The management estimates that 4% of net credit sales will be uncollectable.Calculate the amount of bad debts expense for 2016.

A) $5320
B) $7120
C) $5620
D) $8320