A companys Accounts Receivable balance at its December 31 year-end is $125,650. its allowance for Doubtful Accounts has a credit balance of $328 before the year-end adjustment. It estimates that 4% of outstanding accounts receivable are uncollectible. The Bad Debts Expense is recorded on December 31 reflecting an amount of $5,026. Explain in a detailed manner how the Bad Debt Expense was calculated.