California Dreams Company has the following information about their Accounts Receivable (the company uses the aging method):

Age	Balance
< 31 days	$30,000
31 - 60 days	$15,000
61 - 90 days	$5,000
> 90 days	$1,500

The accounting manager estimates that balances that are less than 31 days will be 95% collectible, whereas the following data is relevant for older balances: (1) 75% of balances 31-60 days old will be collectible, (2) 60% of balances 61-90 days old will be collectible, and (3) 10% of balances >90 days old will be collectible.

What is the balance that should be in the Allowance for Bad Debts? ____________.

Fill in the blank