Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 4% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,700. During the year, Abbott wrote-off accounts receivable totaling $2,700 and made credit sales of $102,000. After the adjusting entry, the December 31 balance in Bad Debt Expense would be Select the correct answer. $4,080 $7,780 O$3,700 $5,080