Dynamic, Inc. had credit sales of $690,000 for March. Accounts receivable of $9,500 were determined to be worthless and were written off during March. Accounts receivable total $527,000 at March 31. Management feels that based on past experience, approximately 4% of net credit sales will prove to be uncollectible.

Assuming Dynamic, Inc. uses the direct write-off method of accounting for uncollectible accounts, uncollectible accounts expense for March is:

A.$21,080.

B.$30,580.

C.$27,600.

D.$9,500.

Assuming Dynamic, Inc. uses the income statement approach (an allowance method) to account for uncollectible accounts, uncollectible accounts expense for March is:

A.$27,600.

B.$30,580.

C.$37,100.

D.$21,080.