Sheridan Company has accounts receivable of $$108,756$ at March $31,2027.$ At March $31,2027,$ there is a $$2,394$ balance in

Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage$-$of$-$receivables basis for estimating

uncollectible accounts. The company's estimates of bad debts are as follows.

$($b$)$

Indicate the amount to record as bad debt expense on March $31,2027.$

Bad Debt Expense