for 2024, Rahal's Auto Parts estimates bad debt expense at 2% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $91,500 and $3,100, respectively, at December 31, 2023. During 2024, Rahal's credit sales and collections were $414,000 and $418,000, respectively, and $3,840 in accounts receivable were written off.

Rahal's final balance in its allowance for uncollectible accounts at December 31, 2024, is:

Multiple Choice

$6,840.

$5,100.

$7,540.

$8,280.