2. On December 31, 2016 before adjusting entries, Accounts Receivable for CNN Company had a debit balance of $400,000, and the Allowance for Doubtful Accounts had a credit balance of $12,000. Credit sales for the year were $3,200,000. If credit losses are estimated at 1% of credit sales: A) The balance of the Allowance for Doubtful Accounts will be $20,000 after adjustment B) The balance of the Allowance for Doubtful Accounts will be $44,000 after adjustment C) The balance of the Allowance for Doubtful Accounts will be $32,000 after adjustment D) Bad Debts Expense for the year will be $44,000