Flyer Company has provided the following information prior to any year-end bad debt adjustment:
- Cash sales, $150,000
- Credit sales, $450,000
• Selling and administrative expenses, $110,000
• Sales returns and allowances, $30,000
- Gross profit, $290,000
- Accounts receivable, $110,000
- Sales discounts, $14,000
• Allowance for doubtful accounts credit balance, $1,200
Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?