Abbott company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, the allowance for doubtful accounts had a credit balance of $3,400. During the year, Abbott wrote-off accounts receivable totaling $2,400, and made credit sales of $118,000. After the adjusting entry, the December 31 balance in bad debt expense would be

A. $3540

B. $6940

C. $4540

D. $3400