Clark Company Estimated the Net Realizable Value of Its Accounts

Multiple Choice

Clark Company estimated the net realizable value of its accounts receivable as of December 31, 2014, to be $165,000, based on an aging schedule of accounts receivable. Clark has also provided the following information: • The accounts receivable balance on December 31, 2014 was $175,000.
• Uncollectible accounts receivable written-off during 2014 totaled $12,000.
• The allowance for doubtful accounts balance on January 1, 2014 was $15,000.
How much is Clark's 2014 bad debt expense?

A) $10,000.
B) $7,000.
C) $13,000.
D) $3,000.