Higgins Co. had credit sales during the year of $400,000, and used the percentage of sales method to estimate and record bad debt expense as 1% of credit sales. The beginning balance in accounts receivable was $30,000, and at year end the balance was $35,000. The beginning balance in the allowance for doubtful accounts was $1,800, and, prior to aging its receivables, the allowance had a credit balance of $400. The aging process suggested that $1050 of the $35,000 would be uncollectible. What amount of bad debt expense should Higgins report for the year