For the Question below, refer to the following fact scenario for Papa Johns Corp. at December 31, 2016:

Net Credit Sales: $3,250,000

Accounts Receivable: $400,000

Allowance for Doubtful Accounts (Before any adjustment at year-end): $2300 debit

a) The account Allowance for Doubtful Accounts is a: 1- contra-revenue, 2-contra asset, 3-asset, 4-expense

b)Based on the above, Papa Johns Corp, at the end of 2016 (before any adjustment) had: 1-underestimated uncollectible accounts receivable, 2- overestimated uncollectible accounts receivable, 3- estimated uncollectible accounts receivable perfectly, 4- stopped estimating the amount of uncollectible receivables.