Accounts Receivables has a balance of $750,000 and the Allowance for Doubtful Accounts has a debit balance of $600 at the end of the current year prior to adjustment. Management estimates that 1% of Accounts Receivables are estimated to be uncollectible. The adjusting entry using the percentage of receivables method would require a credit to:

Select one:

a. Accounts Receivable for $600.

b. None of the above

c. Allowance for Doubtful Accounts for $8,100.

d. Bad Debt Expense for $7,500.

e. Allowance for Doubtful Accounts for $7,500.