On January 1, All City Services has the following balances: Accounts Receivable $23,000 Bad Debts Expense $0

All City has the following transactions during January: Credit sales of $130,000, collections of credit sales of $82,000, and writeoffs of $17,000. All City uses the direct writeoff method. The amount of Bad Debts Expense for January is ________.

A. $23,000 B. $10,723 C. $26,951 D. $17,000