ABC Company has a year-end of December 31, 2022. As the auditor for the company, you have been given the following information:

• Accounts receivable balance as of December 31, 2022, is $800,000.
• Allowance for doubtful accounts balance as of December 31, 2022, is $40,000.
• The company's management estimates that 3% of accounts receivable are uncollectible.

Calculate the amount of bad debt expense that ABC Company should report in its income statement for the year ended December 31, 2022.