12. Ward Co. estimates its uncollectible accounts expense to be 2% of credit sales. Ward's credit sales for year 2 were $1 million. During year 2, Ward wrote off $18,000 of uncollectible accounts. Ward's allowance for uncollectible accounts had a $15,000 balance on January 1, year 2. In its December 31, year 2, income statement, what amount should Ward report as uncollectible accounts expense?