The following data are available for 2014:

Sales, cash

$200,000

Sales, credit

500,000

Accounts Receivable, January 1

80,000

Accounts Receivable, December 31

72,000

Allowance for Doubtful Accounts, January 1

4,000

Accounts written off during 2014

4,600

The journal entry to record bad debt expense for the period and to adjust the allowance account is to be based on an estimate of 1% of credit sales. The entry to record the uncollectible accounts expense for 2014 would include a debit to the Bad Debt Expense account for:

  1. $7,200.
  2. $5,600.
  3. $4,400.
  4. $5,000.