Grady operates a lawn maintenance business using the accrual method. He estimates that 5 percent, or about $2,500 of his 2022 yearend customers’ invoices will never be paid. During 2022, he wrote off $13,500 of his receivables as uncollectible. Grady’s bad debt expense deduction is:

a. $0

b. $2,500

c. $13,500

d. $16,000