The Miller Company recognized $111,000 of service revenue earned on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $76,000 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:

Multiple Choice

• $2,280.

• $3,330.

• $35,000.

• $1,050.