Brighton Corporation uses the allowance method of accounting for bad debts on its internal reports and has used a historical rate of 1.5% of credit sales to estimate its bad debt expense. The aged schedule of Brightons accounts receivable at November 30, Year 2, based upon past collection experience, is presented below.

Days Account Outstanding	Amount	Probability of Collection
0-30 days	$640,000	.98
31-60 days	180,000	.92
61-90 days	95,000	.75
over 90 days	40,000	.60
	$955,000

Total sales for the Year 1-Year 2 fiscal year were $6.5 million, of which 85% was on credit. The allowance for uncollectible accounts had a credit balance of $76,500 on December 1, Year 1, and a debit balance of $3,400 on November 30, Year 2, before any entry to record bad debt expense for the Year 1-Year 2 fiscal year.

If Brighton Corporation continues to determine its bad debt expense by using the historical percentage of credit sales, the bad debt expense for the Year 1-Year 2 fiscal year would be