Calistoga Produce estimates bad debt expense at 0.40% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $473,000 and $1,540 respectively, at December 31, 2015. During 2016, Calistoga's credit sales and collections were $324,000 and $307,000, respectively, and $1,900 in accounts receivable were written off. Calistoga's 2016 bad debt expense is:

$1,296.

$936.

$1,540.

$1,900.