Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,400. During the year, Abbott wrote off accounts receivable totaling $2,800 and made credit sales of $108,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be a. $3,240 b. $6,640 c. $1,700 d. $3,840