A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:
Accounts receivable $ 347,000 debit
Allowance for uncollectible accounts 680 credit
Net sales 792,000 credit
All sales are made on credit. Based on past experience, the company estimates that 0.4% of credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
$2,488
$708
$3,168
$3,848
$2,068