Designers Guild had a 1/1/21 balance in the Allowance for Doubtful Accounts of P12,000. During 2021, it wrote off P8,000 of accounts and collected P3,500 on accounts previously written off. The...

Designers Guild had a 1/1/21 balance in the Allowance for Doubtful Accounts of P12,000. During 2021, it wrote off P8,000 of accounts and collected P3,500 on accounts previously written off. The balance in Accounts Receivable was P220,000 at 1/1 and P260,000 at 12/31. At 12/31/21, Designers Guild estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2021?