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

Probability

Days outstanding Amount of collection

0 30 $87,500 98%

31 60 $13,500 68%

61 90 $9,300 30%

over 91 $2,400 5%

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?