Brief Exercise 4-7

Sweet Company has recorded bad debt expense in the past at a rate of1.5% of accounts receivable, based on an aging analysis. In 2017, Sweet decides to increase its estimate to2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $390,500instead of $300,000. In 2017, bad debt expense will be $121,900instead of $97,100. If Sweets tax rate is30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?(Do not leave any answer field blank. Enter 0 for amounts.)

The cumulative effect of changing the estimated bad debt rate$