The following information is available for Parker Company:

During 2008, Parker estimated that its bad debt expense should be 1% of all credit sales.
As a result of a review and aging of accounts receivable in early January 2009, it has been determined that an allowance for doubtful accounts of $1,100 is needed at December 31, 2008.
Required:
What is the total amount that Parker should record as Bad debt expense for the year ended December 31, 2008?

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Credit sales during 2008 Allowance for doubtful accounts at December 31, 2007 Accounts receivable deemed worthless and written off during 2008 $100,000 1,200 1,600