Ally Co. had a beginning balance in Accounts Receivable of $200,000 and a beginning credit balance in the allowance for doubtful accounts of $4,000. During 2017 he sold $620,000 of goods on credit and collected $600,000. If Ally estimates that 2% of us ending Accounts Receivable will eventually not be collected, his adjusting journal entry for the bad debt expense will include credit to allowance for doubtful accounts of:

A.) $2,400

B.) $4,400

C.) $400

D.) $5,300

E.) none of the above