The Miller Company earned $$190,000$ of revenue on account during its first year of business.

During the year, the company collected $$136,000$ of cash from its customers making

payments on their accounts. The company estimates that $3\%$ of its sales on account will be

uncollectible. The amount of uncollectible accounts $($bad debts$)$ expense recognized on the

income statement will be:

$$5,700$

$$1,320$

$$4,080$

$$54,000$