On December 31, 2021, Johnson Corp. had a $500 credit balance in its allowance for doubtful accounts before recording bad debt expense for the year. Accounts receivable had a $250,000 balance with an aging schedule as follows:

Estimated Percentage

Uncollectible

Outstanding 1-30 days $190,000 1%

Outstanding 31-60 days 30,000 2%

Outstanding 6190 days 10,000 7%

Outstanding more than 90 days 20,000 15%

Total Accounts Receivable $250,000

What is bad debt expense for the year using the aging of accounts receivable method?