The following information pertains to Lightning, Inc. at the end of December:

Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 14% of receivables less than 30 days past due, and 46% of receivables greater than 30 days past due. The accounts receivable balance of $8,700 consists of $5,500 not yet due, $1,800 less than 30 days past due, and $1,400 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?

Credit Sales $60,000 10,000 Accounts Payable Accounts Receivable 7,000 $400 credit Allowance for Uncollectible Accounts Cash Sales 20,000