Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,500. During the year, Abbo wrote off accounts receivable totaling $2,600 and made credit sales of $117,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be a. $2,340 b. $5,840 c. $3,500 d. $3,240