Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on account of $100,000, none of which he has collected. He also has outstanding account receivable aged 1-2 years of $20,000 and over 2 years of $5,000. Based on historical data, he estimates that the following receivables are uncollectible:

• 1% of accounts receivable aged 1 year or less
• 2.5% of accounts receivable aged 1-2 years
• 4% of accounts receivable aged 2+ years

The beginning balance in allowance for doubtful accounts is $1,254. Assuming write offs this year totaled $1,188, what is Eleazar's bad debt expense for the year?