ABC began in 2008 with a debit balance in accounts receivable of $20,000 and a credit balance in Allowance for Doubtful accounts of $1,500. During the year, ABC sold $400,000 of produce and collected $340,000 from customers. In addition, ABC's wrote off $1,000 of accounts receivables as uncollectible.

Management uses the allowance method to account for bad debts and believes that ultimately that 8% of the year end balance in accounts receivable will not be collected.

How much bad debt expense will be recorded in 2008?