Forrester Inc. had a $70,000 beginning balance in Accounts Receivable and a $2,500 balance in the Allowance for Uncollectible Accounts. During the year, credit sales were $400,000 and customers' accounts collected were $405,000. Also, $2,000 in worthless accounts were written off. An aging of the accounts indicates that 5% of the end-of-the-year Accounts Receivable balance is doubtful for collection.
What amount of Bad Debt Expense should be provided at year-end?

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The Answer of Forrester Inc. had a $70,000 beginning balance in Accounts Receivable and a $2,500 balance in the Allowance for Uncollectible Accounts. During the year, credit sales were $400,000 and customers' accounts collected were $405,000. Also, $2,000 in worthless accounts were written off. An aging of the accounts indicates that 5% of the end-of-the-year Accounts Receivable balance is doubtful for collection.
What amount of Bad Debt Expense should be provided at year-end?