The Allowance for Bad Debts Account Has a Credit Balance

The Allowance for Bad Debts account has a credit balance of $3,000 before the adjusting entry for bad debts expense.The company's management estimates that 5% of net credit sales will be uncollectible for the year 2017.Net credit sales for the year amounted to $290,000.What is the amount of Bad Debts Expense reported on the income statement for 2017?

A) $14,500
B) $17,500
C) $7,250
D) $11,500