Flyer Company has provided the following information prior to any year-end bad debt adjustment:

• Cash sales, $167,000
• Credit sales, $467,000
• Selling and administrative expenses, $127,000
• Sales returns and allowances, $47,000
• Gross profit, $507,000
• Accounts receivable, $275,000
• Sales discounts, $31,000
• Allowance for doubtful accounts credit balance, $2,900

Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?

$12,240.

$9,340.

$9,780.

$6,440.