On January 1, All City Services has the following balances:
Accounts Receivable $22,000
Bad Debts Expense $0
All City has the following transactions during January: Credit sales of $120,000, collections of credit sales of $84,000, and write-offs of $18,000. All City uses the direct write-off method. The amount of Bad Debts Expense for January is ________.
A) $22,000
B) $25,714
C) $12,600
D) $18,000
D) $18,000
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