The following information pertains to Lindsey Corp. at the end of the year:

Credit Sales $ 150,000

Accounts Payable 20,000

Accounts Receivable 30,000

Allowance for Uncollectible Accounts 800 debit

Cash Sales 5,500

Lindsey Corp. uses the percentage-of-credit-sales method and estimates that 2% of the credit sales are uncollectible. After the year-end adjustment, what amount of bad debt expense would Lindsey report for the year?

A) $1,200.

B) $2,200.

C) $3,000.

D) $3,800.

Answer: $3,000.