Problem:
On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $93,230; Allowance for Doubtful Accounts, credit balance of $1,305.
Required:
Question: What amount should be debited to Bad Debts Expense, assuming 5% of outstanding accounts receivable at the end of the current year are considered uncollectible?
Note: Please show how you came up with the solution.