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Grady operates a lawn maintenance business using the accrual method. He estimates that 5 percent, or about $2,500 of his 2022 year-end customers invoices will

Grady operates a lawn maintenance business using the accrual method. He estimates that 5 percent, or about $2,500 of his 2022 year-end customers invoices will never be paid. During 2022, he wrote off $13,500 of his receivables as uncollectible. Gradys bad debt expense deduction is:

$0

$2,500

$13,500

$16,000

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