Sheridan Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Sheridan calculated

the Bad Debt Expense as a percentage of sales. It recorded Bad Debt Expense at $1\%$ of sales. Due to changes in the economic

conditions, Sheridan will increase that percentage to $3\%.$ The change is made on January $1,2025.$ Sales in $2023$ were $$1680000$ and

$$3180000$ in $2024.$ Sales in $2025$ total $$4180000.$ What is the Bad Debt Expense that Sheridan will record for $2025?$

$$220800$

$$162600$

$$125400$

$$41800$