At June 30, 2016, before any adjustments, a companys allowance for bad debts was a debit balance of $39,000. Accounts receivables totalled $517,000 as at June 30, 2016. As part of year-end adjusting entries, the company adjusts the allowance for bad debts to the equivalent of 5% of the accounts receivables based on past trends.

What number should appear in the income statement for the year ended June 30, 2016 as bad debts expense?