As of December 31, Gammelguard Corporation has outstanding accounts receivable of $2.4 million. Sales on credit during the year were $9 million. The allowance for doubtful accounts has a credit balance of $20,000. If the company estimates that 7% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?

$630,000
$188,000
$168,000
$148,000