On January $1,$ Year $2$ Grande Company had a $$27,000$ balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year $2,$ Grande provided $$90,000$ of service on account. The company collected $$86,500$ 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?

Multiple Choice

$$10,000$

$$540$

$$1,800$

$$1,730$