At year-end, Chief Company has a balance of $26,000 in accounts receivable of which $2,600 is more than 30 days overdue. Chief has a credit balance of $270 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 1.0% of current accounts and 11% of accounts over thirty days are uncollectible. What is the amount of bad debt expense?

$520

$790

$270

$250