A company had credit sales of $5.0 million for the year and estimates their bad debts to be 1% of net credit sales. Accounts receivable has a $450,000 balance and the allowance for doubtful accounts has a credit balance of $3,000 prior to bad debt adjustment. The entry to adjust the books for bad debts will be:

		An increase to the bad debts expense account for $50,000 and a decrease to accounts receivable for $50,000.
		An increase to bad debts expense for $47,000 and an increase to the allowance for doubtful accounts for $47,000.
		An increase to bad debts expense for $50,000 and an increase to the allowance for doubtful accounts for $50,000.
		An increase to bad debts expense for $47,000 and an increase to accounts receivable for $47,000.