Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $$500,000$ during the year. Saint John has experienced bad debt losses of $3\%$ of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $$4,000.$ No write$-$offs or recoveries were recorded during the year.

What amount of Bad Debt Expense should Saint John recognize for the year?
 

Answer rating: 100% (QA)

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