Bonita Industries has outstanding accounts receivable totaling $6.49 million as of December 31 and sales on credit during the year of $24.7 million. There is also a credit balance of $13000 in the allowance for doubtful accounts. If the company estimates that 5% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?

$1235000.

$311500.

$337500.

$324500.