Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December 31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.

Age Group Accounts Receivable Estimated Loss %
0-30 days past due $ 180,000 1%
31-60 days past due 40,000 2
61-120 days past due 22,000 5
121-180 12,000 10
Over 180 days past due 8,000 25
Total accounts receivable $ 262,000

The unused balance of the allowance for uncollectible accounts on December 31, before any adjustments, is $1,040.
(a) What amount of bad debts expense will LaFond report in its income statement for the year?