On December $31,2023,$ Berzatto Inc. $($a calendar year end business$)$ reports an ending balance in accounts receivable $($before any adjustments$)$ of $$156,500.$ Berzatto Inc. uses the allowance method to account for uncollectible accounts. Assume Allowance for Doubtful Accounts has an unadjusted balance of $($$$6,400).$ Compute the amount of bad debt expense that Berzatto Inc. will record on December $31,2023$ assuming that they use the Analysis of Receivables method to estimate uncollectible accounts.

Berzatto Inc. prepared the following aging$-$of$-$receivables schedule:

$\backslash$table$[[$Age of Account,$\backslash$table$[[$Accounts$],[$Receivable Balance,$],[$Dec$.31]],\backslash$table$[[$Estimated$],[$Uncollectible$],[$Percentage$]]],[$Current$,$$$125,000,4\%$