Mills Corporation's balance sheet included the following information:

Accounts Receivable	$490,000
Less: Allowance for Doubtful Accounts	64,000
Accounts Receivable, Net of Allowance	$426,000

If the Allowance account had a credit balance of $27,000 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year, what was the amount of Bad Debt Expense recognized during the year?

a) $64,000

b) $27,000

c) $32,000

d) $37,000