Annual sales were $1,600,000, and the Janaury 1 Allowance for Uncollectibles had a credit balance of $25,000. $18,600 of accounts were written off during the year. Using the percentage of sales technique and a 2% rate, Uncollectible accounts expense is:
A. $7,000
B. $18,600
C. $25,600
D. $32,000
E. None of there.