ABC Associates had credit sales of $1,000,000 in the current year, an ending Accounts Receivable balance of $700,000, and a $34,000 preadjustment credit balance in Allowance for Doubtful Accounts. Bad debts are estimated as 10% of outstanding accounts receivable. The adjusting entry to record bad debt expense for the year would include a

a) $70,000 credit to Bad Debt Expense.

b) $34,000 debit to Bad Debt Expense

c) $70,000 credit to Allowance for Doubtful Accounts

d) 36,000 debit to Bad Debt Expense