At year-end, Chief Company has a balance of $15,000 in accounts receivable of which $1,500 is more than 30 days overdue. Chief has a credit balance of $150 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 2.0% of current accounts and 10% of accounts over thirty days are uncollectible. What is the amount of bad debt expense?

Multiple Choice

• $570.

• $150.

• $270.

• $420.