Horton Draperies, Inc. works with designers to make high-end window coverings. Below is information from their general ledger for the fiscal year ended June 30, 2010.

• Cash sales, $164,000
• Credit sales, $464,000
• Sales returns and allowances, $44,000
• Accounts receivable, $245,000
• Sales discounts, $28,000
• Allowance for doubtful accounts credit balance, $2,600

Horton estimates bad debt expense assuming that 1% of credit sales have historically been uncollectible. How much is Hortons bad debt expense?