Moore Co. estimates its uncollectible accounts expense to be 2 percent of credit sales. Moores credit sales for 2006 were $1,000,000. During 2006, Moore wrote off $18,000 of uncollectible accounts. Moores Allowance for Uncollectible Accounts account had a $15,000 balance on January 1, 2006. On its December 31, 2006 income statement, what amount should Moore report as bad debt expense?

a) $20,000

b) $23,000

c) $18,000

d) $17,000