On December 1, Accounts Receivable were $550,000 and the Allowance for Doubtful Accounts had a credit balance of $18,000. December 5, the company recorded $200,000 in net credit Sales. December 20, the company wrote-off $500,000 as Cash collections. Management estimates that the allowance should be 10% of the December 31 ending balance in Accounts Receivable. What is the total of the amount of the Bad Debt Expense reported on the Income Statement for the period ending December 31?

**Use T-Accounts to show your work**