San Ltd.'s allowance for doubtful accounts was $85,000 at the end of Y8 and $105,000 at the end of Y7. For the year ended December 31, Y8, San reported bad debt expense of $18,000 in its income statement. What amount did San debit to allowance for doubtful accounts during Y8 to write off actual bad debts? 

$12,000 

$38,000 

$20,000 

$34,650