(BI), a public company, is a large decor company with a year end of December 31. In mid-2020, $25,000 of accounts receivable (from sales made in 2019) was found to be uncollectable and was written off. Later in 2020, BI received $4,000 for an account that had been written off in 2019. On January 1, 2020, BI had a credit balance of $32,000 in its allowance for doubtful accounts. On December 31, 2020, its accounts receivable balance was $937,000.

BI calculates its allowance for doubtful accounts as 4.5% of outstanding accounts receivable.

Required: Determine the amount that BI should report as bad debt expense in its statement of comprehensive income for 2020, and prepare the journal entry that BI should record.