A business has accounts receivable of $400,000 and an allowance for bad debts of $24,500. After a collection attempt, you decide to cancel a customer's account for $2,800. Which of the following represents the necessary entry to cancel the account?

1.-Charge: Bad debt expense $2,800; Credit: Provision for bad debts $2,800

2.-Charge: Provision for bad debts $2,800; Credit: Accounts Receivable $2,800

3.-Does not require a seat because it has already been provisioned

4.-Charge: Bad debt expense $2,800; Credit: Accounts Receivable $2,800