27. At year-end Shifty Ltd had a balance of Accounts Receivable of $90 000 and an Allowance for Doubtful Debts of $4000. It was decided to write off the debt of Wriggler totalling $2500 as irrecoverable. It was further decided that the Allowance for Doubtful Debts should stand at 5% of Accounts Receivable. What was thejournal entry needed to bring the Allowance for Doubtful Debts to the required level after writing off the debt of Wriggler? Select one: a. Dr Bad Debts Expense .......... $3000 Cr Allowance for Doubtful Debts .......... $3000 b. Dr Allowance for Doubtful Debts .......... $2500 Cr Accounts Receivable .......... $2500 c. Dr Bad Debts Expense .......... $4500 Cr Allowance for Doubtful Debts .......... $4500 d. Dr Bad Debts Expense ..........$2875 Cr Allowance for Doubtful Debts .......... $2875