Superior Company has provided you with the following information before any year-end adjustments: Net credit sales are $134,750. Historical percentage of credit losses is 4%. Allowance for doubtful accounts has a credit balance of $350. Accounts receivables ending balance is $43,500. What is the estimated bad debt expense using the percentage of credit sales method?

	$1,740.
	$5,390.
	$5,040.
	$5,740.