ATK Corp. uses the aging method of accounts receivable to estimate the amount of uncollectible accounts for the current year to be $28,400 as of December 31. The balance of Accounts Receivable is $320,000 and the Allowance for Uncollectible Accounts has a credit balance of $11,600 before adjustment on December 31.

How much bad debt expense will ATK report for the year?

$40,000

$28,400

$25,000

$16,800