As of December 31, 2020, Gill Co. reported accounts receivable of $228,000 and an allowance for uncollectible accounts of $8,800. During 2021, accounts receivable increased by $22,300, (that change includes $7,450 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

• $7,450.

• None of these answer choices are correct.

• $8,662.

• $10,012.

As of December 31, 2020, Gill Co. reported accounts receivable of $228,000 and an allowance for uncollectible accounts of $8,800. During 2021, accounts receivable increased by $22,300, (that change includes $7,450 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 $7,450. None of these answer choices are correct. $8,662. $10,012