Texts: Underwood Company has provided the following information prior to any year-end bad debt adjustment:
- Revenue: $1,856,000
- Selling and administrative expenses: $372,000
- Sales returns and allowances: $132,000
- Gross profit: $1,512,000
- Accounts receivable: $372,000
- Sales discounts: $84,000
- Allowance for doubtful accounts credit balance: $4,160
Alderwood prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. How much is bad debt expense?