3. A corporation uses the allowance method of recording bad debts. On June 7, 20x3, the corporation learns that the bankruptcy court has ruled that Carla Cox is bankrupt and now no longer owes $1,000 to the corporation. To write off Carla Cox's account receivable, the corporation should .... A. Debit Bad Debts Expense for $1,000 B. Debit Accounts Receivable for $1,000 C. Credit Allowance for Bad Debts for $1,000 D. Debit Allowance for Bad Debts for $1,000 E. None of the above