Bramble Corp. has outstanding accounts receivable totaling $6.50 million as of December 31 and sales on credit during the year of $22.5 million. There is also a credit balance of $11000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?

$390000.

$379000.

$1350000.

$401000.