A company had a debit balance of $1,700 in the Allowance for Doubtful Accounts account and a debit balance of $540,000 in the Accounts Receivable account prior to the year-end adjustment. Past experience suggests that 2% of receivables will be uncollectible. What amount should be in the adjusting entry for bad debts? Answer $1,700 $10,800 $12,500 $9,100 None of the above