Aspen Corporation Data for Aspen Corporation for the year ended December 31, 2012, are presented below.

Aspen Corporation

Data for Aspen Corporation for the year ended December 31, 2012, are presented below.

Credit sales$2,100,000Sales returns150,000Gross accounts receivable (December 31, 2012)420,000Allowance for bad debts (Before adjustment at December 31, 2012)25,000Estimated amount of uncollected accounts based on an aging analysis75,000

Refer to the information provided for Aspen Corporation. If Aspen estimates its bad debts at 4% of net credit sales, what amount will be reported as bad debt expense for 2012?

a. $78,000

b. $84,000

c. $50,000

d. $75,000