Assume the Murtha Company reported the following adjusted account balances at year-end.

	2016	2015
Accounts Receivable	$1,720,200	$1,370,920
Allowance for Doubtful Accounts	(95,000)	(79,000)
Accounts Receivable, Net	$1,625,200	$1,291,920

Assume the company recorded no write-offs or recoveries during 2016. What was the amount of Bad Debt Expense reported in 2016?

$32,000.

$79,000.

$95,000.

$16,000.