On January 1 a company had a beginning accounts receivable balance of $120,000 and a beginning credit balance in the allowance for uncollectible accounts of $12,000. During the year they had total credit sales of $200,000 and collected $150,000 cash from customers. They did not have any write-offs during the year.

At the end of the year, the company performs an adjusting entry to account for their uncollectible accounts receivable. The company will reserve 10% of their unadjusted accounts receivable balance at the end of the year.

What amount of Bad Debt expense will be recorded for the year?