Dune Tour Company reported the following on its 12/31/2017 financial statements:

Accounts Receivable (net of an $16,000 Allowance) of $104,000

Consider that during 2018 Dune accrued bad debt at 3% of credit sales, reported actual customer write offs of $21,000, credit sales of $750,000, and cash collections from customers as payment on account of $735,000. What value will Dune report as bad debt expense for the twelve months ended at 12/31/2018?

	A.	$17,500
	B.	$27,500
	C.	None of the answer choices provided are correct.
	D.	$21,000
	E.	$22,500