3. Assume the following unadjusted account balances at the end of the accounting period for Emmie Company: Accounts Receivable, $300,000; Allowance for Doubtful Accounts, $4,200 (debit balance); and Net sales, $3,600,000. If Emmie's past experience indicates credit losses of 1% of net sales, the adjusting entry to estimate doubtful accounts is: A) Bad Debts Expense 36,000 Accounts Receivable 36,000 B) Bad Debts Expense 31,800 Allowance for Doubtful Accounts 31,800 C) Bad Debts Expense 40,200 Allowance for Doubtful Accounts 40,200 D) Bad Debts Expense 36,000 Allowance for Doubtful Accounts 36,000