10)Oakpark, Inc.'s $180,000 Accounts Receivable balance at December 31 consisted of $160,000 current balances and $20,000 past-due balances. At December 31, the Allowance for Doubtful Accounts had a credit balance of $1,600. Oakpark estimated that 2% of current balances and 15% of past-due balances will prove uncollectible.

The adjusting entry to record bad debts expense is:

A) Bad Debts Expense5,800

Allowance for Doubtful Accounts5,800

B) Bad Debts Expense4,600

Allowance for Doubtful Accounts4,600

C) Bad Debts Expense4,200

Accounts Receivable4,200

D) Bad Debts Expense7,400

Allowance for Doubtful Accounts7,400