A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $21,000 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $550. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Bad Debts Expense	21,000
Allowance for Doubtful Accounts		21,000

Bad Debts Expense	20,450
Allowance for Doubtful Accounts		20,450

Bad Debts Expense	21,550
Allowance for Doubtful Accounts		21,550

Accounts Receivable	21,000
Bad Debts Expense	550
Sales		21,550

Accounts Receivable	21,550
Allowance for Doubtful Accounts		21,550