At 1 January, Davidson Services Has the Following Balances: Davidson

Multiple Choice

At 1 January, Davidson Services has the following balances: Davidson has the following transactions during January: Credit sales of $80 000, collections of $76 000, and write- offs of $12 000. Davidson uses the direct write- off method. At the end of January, the balance in Bad debts expense is:

A) $12 000.
B) $4 000.
C) $28 000.
D) $16 000.