As of December 31, 2020, Gill Co. reported accounts receivable of $226,000 and an allowance for uncollectible accounts of $8,600. During 2021, accounts receivable increased by $22,500, (that change includes $7,700 of bad debts that were written off). An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. Bad debt expense for 2021 would be:

Multiple Choice

$1,585.

$7,700.

$2,485.

None of these answer choices are correct.