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Unlucky Inc. offers its customers 60 days to pay off their accounts. In 2019, they had a total net credit sales of $1,000,000, and on

Unlucky Inc. offers its customers 60 days to pay off their accounts.

In 2019, they had a total net credit sales of $1,000,000, and on Dec 31st 2019, they have $200,000 AR outstanding.

The managers estimate that 19% of AR are uncollectible.

On Dec 31st 2019, prior to adjusting entries, Unlucky Inc. reports a balance on their Allowance for doubtful accounts of $14,250.

What is the amount of bad debt expense that Unlucky Inc. should recognize for the year of 2019?

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