Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged based on three time periods as follows: (1) not yet due, $16,000, (2) up to 120 days past due, $7,400, and (3) more than 120 days past due, $4,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3 percent, (2) 15 percent, and (3) 36 percent, respectively. At the end of the current year, the Allowance for Doubtful Accounts balance is $600 (credit) before the end-of-period adjusting entry is made.

Required:

What amount should be recorded as Bad Debt Expense for the current year? (Enter your answers as a whole percentage (i.e., 0.12 should be entered as 12).)

\begin{tabular}{|c|c|c|c|} \hline Aged Accounts Receivable & \begin{tabular}{l} Estimated \\ Percentage \\ Uncollectible \end{tabular} & & \begin{tabular}{c} Estimated \\ Amount \\ Uncollectible \end{tabular} \\ \hline Not yet due & & % & \\ \hline Up to 120 days past due & & % & \\ \hline Over 120 days past due & & % & \\ \hline \multicolumn{4}{|l|}{ Estimated balance in allowance for doubtful accounts } \\ \hline \multicolumn{4}{|l|}{ Current balance in allowance for doubtful accounts } \\ \hline Bad debt expense for the year & & & \\ \hline \end{tabular}