The following information pertains to a company at the end of December:

Credit Sales $ $20,000$

Accounts Payable $10,000$

Accounts Receivable $8,900$

Allowance for Uncollectible Accounts $400$ credit

Cash Sales $20,000$

The company uses the aging method and estimates it will not collect $7\%$ of accounts receivable not yet due, $11\%$ of receivables up to $30$ days past due, and $45\%$ of receivables greater than $30$ days past due. The accounts receivable balance of $$8,900$ consists of $$4,500$ not yet due, $$2,500$ up to $30$ days past due, and $$1,900$ greater than $30$ days past due. What is the appropriate amount of Bad Debt Expense?

Multiple Choice

$$400$

$$1,045$

$$275$

$$1,126$