AMQ uses aging of accounting receivable method. At the end of 2012, AMQ has $50,000 accounts receivables that are between 90 and 120 days, and AMQ estimates it can collect 70% of these receivables; AMQ also has $20,000 accounts receivables that are over 120 days old, and it estimates that it can collect 60% of these receivables. AMQ has a previous credit balance of $3,000 in allowance for doubtful accounts. How much should AMQ recognize in bad debt expense at the end of 2012?

Question 3 options:

	$26,000
	$0
	$23,000
	$20,000