On January 1, year 2, Kincaid Companies accounts receivable and the allowance for doubtful accounts carry balances of $68,200 and $2,300, respectively. During the year Kincaid Reported $176,000 of credit sales. Kincaid wrote off $1,550 of receivables as uncollectible in year two. Cash collections of receivables amounted to $203,300. Kincaid estimates that it will be unable to collect 1% of credit sales.

The amount of uncollectible accounts expense recognized in the year 2 income statement will be:

• $1,760
• $682
• $2,033
• $2,510