The following information is from the records of Armadillo Camera Shop: 
The company uses the direct write-off method for bad debts. What is the amount of bad debts expense?
Definitions:
Income Statement
A financial statement that shows a company's revenues and expenses over a specified period, culminating in net income or loss.
Owners' Equity
The residual interest in the assets of an entity after deducting liabilities, essentially representing the owners' claim against the company's assets.
Percentage Increase
The ratio, expressed as a percentage, by which a quantity grows over a specified period.
Balance Sheet
A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.
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