Classic Auto Parts sells new and used auto parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2008, its first year of operations, Classic Auto Parts experienced the following:

Sales on Account	$266,800
Cash Sales	619,000
Collections of Accounts Receivable	253,460
Uncollectible accounts charged off during the year	1,394

Assume that Classic Auto Parts uses the allowance method of accounting for bad debts and estimates that 1 percent of its sales on account will not be collected. What is the amount of bad debts expense for 2008?