Robinson, Inc. reports the following aging schedule for accounts receivable at December 31, 2015.

Probability

Days outstandingAmountof collection

0 - 30$87,50098%

31 - 60$13,50068%

61 - 90$9,30030%

over 91$2,4005%

During 2015 gross sales were $350,000. Ninety percent of gross sales were credit sales. Management estimates that 3% of credit sales will be uncollectible. The current balance in the Allowance for Doubtful Accounts is $5,500 (credit). What amount of bad debt expense should Robinson record at the end of the year using the percentage of sales method?

Not sure how to even start this one. Can you walk me through it?