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: 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? 1, 394 1, 274 2, 668 4-062