Trainor Company Estimates Bad Debt Expense Using a Percentage of Credit

Trainor Company estimates bad debt expense using a percentage of credit sales (5%) . The company began its current year with an $8,500 balance in the allowance account. During the current year, $10,500 of accounts receivable were written off, and $1,200 of previously written off accounts were collected. Credit sales for the year were $255,000. The bad debt expense for the year was

A) $10,500
B) $ 8,500
C) $ 12,750
D) $ 11,550