The Drilling Company recognized $119,000 of service revenue earned on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Drilling collected $80,000 of cash from accounts receivable. The company estimates that it will be unable to collect 3% of its sales on account.The amount of uncollectible accounts expense recognized on the Year 2 income statement was: $3,570. $39,000. $1,170. $2,400