On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $72,400 and $3,200, respectively. During Year 2, Kincaid reported $197,000 of credit sales, wrote off $1,850 of receivables as uncollectible, and collected cash from receivables amounting to $239,900. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.

What is the amount of uncollectible accounts expense that will be reported on the Year 2 income statement?

A) $2,399

B) $1,970

C) $724

D) $1,850