As of December 31, 2015, Gill Co. reported accounts receivable of $220,000 and an allowance for uncollectible accounts of $8,400. During 2016, accounts receivable increased by $22,700, and $7,550 of bad debts were written off. An analysis of Gill Co.'s December 31, 2016, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2016 would be: $4,004. $7,550. $4,854. None of these answer choices are correct