The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2016, the allowance account had a credit balance of $7,577. Credit sales for 2016 totaled $440,171 and the year-end accounts receivable balance was $49,635. During this year, $5,044 in receivables were determined to be uncollectible and were written off. Manda Panda anticipates that 2% of all credit sales will ultimately become uncollectible.

What is the balance in the allowance for bad debts Manda Panda should report in its 12/31/16 Balance Sheet? $____