ABC Company begins a new accounting period each month. ABC Company began operations January 1, Year 1. In January, ABC Company had $10,000 cash sales, $15,000 sales on account and collected $3,000 on account. During February, ABC Company had $25,000 cash sales, $32,000 sales on account and collected $21,000 on account. ABC Company estimates delinquent accounts using the Percent of Revenue method. ABC Company estimates Bad Debt Expense to be 10%. What is ABC Company's Bad Debt Expense for January?

ABC Company begins a new accounting period each month. ABC Company began operations January 1, Year 1 . In January, ABC Company had $10,000 cash sales, $15,000 sales on account and collected $3,000 on account. During February, ABC Company had $25,000 cash sales, $32,000 sales on account and collected $21,000 on account. ABC Company estimates delinquent accounts using the Percent of Revenue method. ABC Company estimates Bad Debt Expense to be 10%. What is ABC Company's Bad Debt Expense for January