At December 31, Gill Co. reported accounts receivable of $264,000 and an allowance for uncollectible accounts of $1,450 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

Multiple Choice

• $6,470.

• $1,450.

• $7,920.

• $5,780.