In the balance sheet at the end of its first year of operations, ABC Inc. reported an allowance for doubtful accounts of $80,500. During that year, ABC wrote off $33,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,260,000, and cash collections from credit customers totaled $1,900,000. What bad debt expense would ABC report in its first year income statement?

A) $80,500 B) $47,500 C) $113,500 D) None of the above

Please explain and or show work.