A company has an opening credit balance in Allowance for Doubtful Accounts of $$1,500.$ Its sales for the year total $$400,000.$ Management estimates that $1\%$ of sales are uncollectible. What is the balance of the Allowance for Doubtful Accounts at the end of the year using the income statement method?

$$4,000$

$$2,500$

$$5,500$

None of the above