Billy is the owner of a sole proprietorship that offers catering service. During 2019, Billy had cash sales of $80,000 and credit sales of $150,000. Based on his past experience, about 3% of his credit sales became bad debts. In 2019, Billy wrote-off $3,050 in bad debts. In 2018, he deducted $32,000 for allowance for doubtful accounts (AFDA). By the end of 2019, Billy collected $225,000 cash, out of which $1,700 was for the accounts receivable previously written-off by Billy as a bad debt and $60,000 was for the catering services to be provided in January 2020. At year end, Billy analyzed all the customer accounts and determined that $16,000 of accounts receivable was doubtful. In the past few years, about 60% of the doubtful accounts became bad debts. In 2018, Billy deducted $45,000 for services to be rendered in the following year. Find income for tax purposes.

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