On January 1, year too, Grande company had a $62,600 balance in the accounts receivable account and a $1,100 balance and the allowance for doubtful accounts account. During year 2, Grande provided $148,000 of service on account. The company collected $154,500 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:

• $1,480
• $626
• $1,545
• $1,150