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