Caris Collectibles estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Caris Collectible computes a total of $3,360 in estimated losses as of December 31, 2022. Its Accounts Receivable account has a balance of $ 112,800 and its Allowance for Uncollectible Accounts has an unused balance of $480 before adjustment at December 31, 2022.

How much is bad debt expense that Caris Collectibles will report in 2022?

$3,360

$480

$2,880

$3,840