The following data have been taken from the 20X4 accounting records of Kirby Corp.:

Dr. Cr.

Total sales for 20X4 $450,000

Credit sales for 20X4 360,000

Accounts receivable, 12/31/X4 $63,000

Allowance for Doubtful Accounts,

12/31/X4 3,000

Kirby estimates that 6% of its accounts receivable will be uncollectible. How much should Kirby record as Uncollectible Accounts Expense for 20X4?

a. $780.

b. $2,700.

c. $3,780.

d. $6,780