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 $42,125 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $3,539. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Account Receivable	42,125
Bad Debt expense	3,539
Sales		45,664

Bad Debt Expense	42,125
Allowance for Doubtful Accounts		42,125

Bad Debt Expense	38,586
Allowance for Doubtful Accounts		38,586

Account Receivable	38,586
Allowance for Doubtful Accounts		38,586

Bad Debt Expense	45,664
Allowance for Doubtful Accounts		45,664