Brown Cow Dairy uses the aging approach to estimate bad debt expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due $12,000. (2) up to 120 days past due $5,000, and (3) more than 120 days past due $3,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectability is

(1) 2 percent, (2) 10 percent, and (3) 30 percent, respectively. At December 31. 2005 (end of the current year), the Allowance for Doubtful Accounts balance was $300 (credit) before the end-of-period adjusting entry is made.

Required:

What amount should be recorded as Bad Debt Expense for the current year?