Ruby Red manufactures, markets, and distributes citrus flavored soft drinks across the globe. Ruby Red hired a collection agency in 2012 to increase collection rates from customers. As a result, Ruby estimates that only 2% of its 2013 credit sales will be written off, compared to the 4% of 2012’s credit sales that were estimated to be uncollectible. At December 31, 2013, Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts and credit sales of $1,570,000.

Required:
Use the percentage of credit sales method to calculate the bad debt expense.