At the end of 20X1, Chadam Co. had an ending balance in allowance for doubtful accounts for $40,000. During 20X2, Chadam wrote-off $50,000 of accounts receivable. At the end of 20X2, Chadam had $400,000 in accounts receivable and determined that 8% of these would be uncollectible. What amount should be reported as bad debt expense on Chadam's 20X2 income statement? $32,000. $72,000. $42,000. $52,000.