A company has $104,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $940 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

• $4,160

• $5,100

• $3,220

• None of these is correct.

• $940