Edsel Inc. has the following unadjusted year end trial balance information available for $20$X$1$:

Credit sales $ $600,000$

Ending accounts receivable balance $ $180,000$

Ending allowance for credit losses balance $ $1,500$

Estimated uncollectibles $2\%$

If Edsel uses the gross accounts receivable approach for estimating the allowance for credit losses, the allowance for credit losses account, after the proper adjustments to the accounts are recorded, should show a balance of

Multiple Choice

$$2,600$

$$3,600$

$$5,600$

$$6,200$