At the Beginning of 2015, Peter Dots Has the Following

Multiple Choice

At the beginning of 2015, Peter Dots has the following ledger balances: During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the aging method. The amount estimated as uncollectible was $25,000. The ending balance in Bad Debts Expense would be:

A) $38,000.
B) $25,000.
C) $13,000.
D) $7,000.