The chief accountant for Larkspur Corporation provides you with the following list of accounts receivable written off in the current year.

Date		Customer		Amount
March 31		E. L. Masters Company		$7,620
June 30		Stephen Crane Associates		8,920
September 30		Amy Lowells Dress Shop		7,620
December 31		R. Frost, Inc.		7,979

Larkspur follows the policy of debiting Bad Debt Expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement purposes because the Internal Revenue Service will not accept other methods for recognizing bad debts. All of Larkspurs sales are on a 30-day credit basis. Sales for the current year total $2,311,600. The balance in Accounts Receivable at year-end is $80,700 and an analysis of customer risk and charge-off experience indicates that 9% of receivables will be uncollectible (assume a zero balance in the allowance). (b) By what amount would net income differ if bad debt expense was computed using the percentage-of-receivables approach? Assume that accounts written off were for sales in a prior year.