XYZ Corp. uses the percentage of credit sales method in determining its bad debt expense. The following information comes from the accounting records of XYZ Corp.:

Cash sales $260,000
Credit sales 740,000
Total sales 1,000,000
Credit balance in the Allowance for Doubtful Accounts 8,000
Bad debt loss rate 3%

What is the estimate of bad debt expense?

a) $22,200

b) $22,000

c) $30,200

d) $30,000