On January 1, All City Services has the following balances:

Accounts Receivable $25,000

Bad Debts Expense $0

All City has the following transactions during January: Credit sales of $120,000, collections of credit sales of $81,000, and write-offs of $18,000. All City uses the direct write-off method. The amount of Bad Debts Expense for January is ______.

A. $26,667

B. $12,150

C. $25,000

D. $18,000