Use the following information to answer the next two questions. Clean Auto Company is an automobile cleaning business and has been operating for several years. It sends invoices to its customers for automobile cleaning services at the end of each month, and expects the customer to pay within 30 days. During 20X5, Clean Auto billed its customers a total of $400,000 for services rendered during the year. All of these sales were made on credit. At the end of 20X5, the Accounts Receivable for Clean Auto had a balance of $40,000. After all write-offs but before the year-end adjusting entry, the Allowance for Doubtful Accounts had a credit balance of $1,000.

Assume that Clean Auto uses the aging of accounts receivable method to estimate bad debts, and that at the end of 20X5 the aging of year-end accounts receivables estimates that $1,750 of the $40,000 Accounts Receivable balance will be uncollectible. What is Clean Auto's 20X5 Bad Debt Expense?