On January 1, Year 2, Grande Company had a $64,800 balance in the Accounts Receivable account and a $1,600 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $159,000 of service on account. The company collected $173,500 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account. The amount of uncollectible accounts expense recognized on the Year 2 income statement is:

$1,590. $1,300. $1,735. $648.