On December 31, 2016, Vesta Company's accounts receivable balance was of $1,200,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Doubtful Accounts on January 1, 2016 was $23,880 (credit). During the year 2016, Triton wrote off $25,800 of bad debts.

What amount should be reported as the Bad debt expense for the year 2016?

Question 25 options:

A)

$24,800

B)

$25,920

C)

$24,000

D)

$22,080