Abbott Company uses the allowance method of accounting for uncollectible receivables. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,600. During the year, Abbott wrote off accounts receivable totaling $2,600 and made credit sales of $102,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be

a. $4,060

b. $3,600

c. $3,060

d. $6,660