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?