On January 1, Davidson Services Has the Following Balances

Multiple Choice

On January 1, Davidson Services has the following balances: Davidson has the following transactions during January: Credit sales of $100,000, collections of credit sales of $85,000, and write-offs of $15,000. Davidson uses the direct write-off method. At the end of January, the balance in Bad Debts Expense is:

A) $16,000.
B) $17,000.
C) $12,000.
D) $15,000.