Hopper Inc

Hopper Inc. follows the balance sheet approach in preparing its allowance for doubtful accounts (AFDA). The opening AFDA balance as at January 1, 20X3, was a credit of $8,700. During the 20X3 fiscal year, a total of $7,860 was written off as uncollectable for the year and a total of $650 in previously written-off accounts was recovered. Hopper has the following accounts receivable balances as at December 31, 20X3, including a breakdown of the percentage estimated by management to be uncollectable:

Days outstanding Balance % estimated to be uncollectable

0-30 days $480,520 0.5%

31-60 days 187,600 1.8% 61-90 days 77,250 2.5% Greater than 90 days 38,760 4.5%

What is the total amount of bad debt expense that Hopper needs to record for the December 31, 20X3, fiscal year? Round to the nearest dollar. a) $ 7,965 b) $ 8,615 c) $ 9,455 d) $10,945