On December 31, 2022, a company has accounts receivable of $250,000 and an allowance for doubtful accounts of $15,000. During 2023, the company made credit sales of $1,000,000 and collected $920,000 from customers. The company estimates that 3% of credit sales will become uncollectible. At the end of 2023, the company determines that the allowance for doubtful accounts should be increased to $25,000. What is the bad debt expense for 2023?

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