Atlantis Tropicals
The following information was taken from the company's records at the end of 2012.
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Credit Sales
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$1,000,000
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Sales returns and allowances
|
80,000
|
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Accounts Receivable--December 31, 2012
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255,000
|
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Allowance for Doubtful Accounts--December 31, 2012
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|
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(Before adjustment for bad debts)
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23,000
|
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Estimated uncollected accounts
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|
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(per aging schedule at December 31, 2012)
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35,000
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Refer to Atlantis Tropical. If the aging approach is used to estimate bad debts, how much bad debts expense will the company report for 2012?