Lewis Company uses the allowance method for recording its expected credit losses. It estimates bad debts at 2% of credit sales, which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts has a balance of $12,200 before adjustments. What is the amount of bad debt expense Lewis Company will report on their Income Statement this year?
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