On January 1, Year 2 Grande Company had a $26,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $88,000 of service on account. The company collected $84,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.

What is the amount of uncollectible accounts expense recognized on the Year 2 income statement?

a) $1,690

b) $9,500

c) $520

d) $1,760