3. Billings Corporation had total sales in the current year of $600,000 and credit sales of $530,000. The Accounts Receivable balance was $350,000 on the balance sheet date and the Allowance for Doubtful Accounts had a credit balance of $10,000 before adjusting entries. Bad debt expense is estimated as 2% of credit sales. The adjusting entry to record estimated bad debt expense would include a

a. $10,600 debit to Bad Debt Expense

b. $10,600 credit to Bad Debt Expense

c. $600 debit to Bad Debt Expense

d. $600 credit to Bad Debt Expense