At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $380,000 and $1,030 (debit) in Allowance for Uncollectible Accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for the year should be:

$7,731.

$8,630.

$1,030.

$6,570.