The following information relates to a companys accounts receivable: accounts receivable balance at the beginning of the year, $450,000; allowance for uncollectible accounts at the beginning of the year, $34,000 (credit balance); credit sales during the year, $1,300,000; accounts receivable written off during the year, $12,500; cash collections from customers, $925,000. Assuming the company estimates bad debts at an amount equal to 5% of credit sales, calculate bad debt expense for the year.