Alderwood Company has provided the following information prior to any year$-$end bad debt adjustment:

$$ Cash sales, $$450,000$

$$ Credit sales, $$1,350,000$

$$ Selling and administrative expenses, $$330,000$

$$ Sales returns and allowances, $$90,000$

$$ Gross profit, $$1,470,000$

$$ Accounts receivable, $$330,000$

$$ Sales discounts, $$42,000$

$$ Allowance for doubtful accounts credit balance, $$3,600$

Alderwood estimates bad debt expense assuming that $1\mathrm{.}5\%$ of credit sales have historically been uncollectible. How much is Alderwood's bad debt expense?

THE CORRECT ANSWER IS $$20,250\mathrm{.}00$