On January 1, Davidson Services has the following balances

Accounts Receivable $23,000
Bad Debts Expense $0

Davidson has the following transactions during January: Credit sales of $120,000, collections of credit sales of $84,000, and write-offs of $18,000. Davidson uses the direct write-off method. The amount of Bad Debts Expense for January is ________.
A) $23,000
B) $25,714
C) $12,600
D) $18,000

D