As of December 31, 2020, Gill Co. reported accounts receivable of $229,000 and an allowance for uncollectible accounts of $9,400. During 2021, accounts receivable increased by $22,100, (that change includes $7,800 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 4% of accounts receivable. Bad debt expense for 2021 would be:

Multiple Choice

• $8,444.

• $7,800.

• $10,044.

• None of these answer choices are correct.