Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $610,000 during the year. Saint John has experienced bad debt losses of 3% of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $5,100. No write-offs or recoveries were recorded during the year. What amount of Bad Debt Expense should Saint John recognize for the year?

Multiple Choice

• $5,100

• $23,400

• $18,300

• $13,200