Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,100. During the year, Abbott wrote-off accounts receivable totaling $2,700 and made credit sales of $103,000. After the adjusting entry, the December 31 balance in Bad Debt Expense would be

Select the correct answer.

$5,160

$2,460

$3,100

$2,060