On December 31, 2019, Bula Company's Accounts Receivable Balance Was

On December 31, 2019, Bula Company's accounts receivable balance was of $1,800,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Doubtful Accounts on January 1, 2019 was $35,820 (credit) . During the year 2019, Bula wrote off $38,700 of bad debts.
What amount should be reported as the Bad debt expense for the year 2019?

A) $36,000
B) $37,200
C) $38,880
D) $33,120