As of December 31, 2012, Gill Co

As of December 31, 2012, Gill Co. reported accounts receivable of $216,000 and an allowance for uncollectible accounts of $8,400. During 2013, accounts receivable increased by $22,000, and $7,800 of bad debts were written off. An analysis of Gill Co.'s December 31, 2013, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2013 would be:

A) $6,540.
B) $7,800.
C) $7,140.
D) None of the above is correct.