Modern office has 3381050 of credit sales for the year and has outstanding account receivable balance of 55159 with an allowance for doubtful account(AFDA) credit balance of 1268 as at December 31.

Modern Office estimates that either 0.1% of credit sales or 8% or outstanding account receivable will not be collectible and wants to set up an AFDA.

How much is bad debt expense for the year under the Percentage of Sales (Income Statement) Approach? ROUND ALL ANSWERS TO 2 DECIMAL PLACES