Assume the following unadjusted account balances at the end of the accounting period for James Avery Company: Accounts Receivable, $$126,000$; Allowances for Doubtful Accounts, $$3,360($debit balance$)$; Credit sales, $$1,008,000.$

If James Avery Company's past experience indicates credit losses of $2\%$ of credit sales, the adjusting entry to estimate uncollectible accounts is:

Select one:

$$ a$.$

$\backslash$table$[[,$Debit,Credit$],[$Allowance for Doubtful Accounts,$20,160,],[$Bad Debt Expense,,$20,160]]$

b$.$

$\backslash$table$[[,$Debit,Credit$],[$Bad Debt Expense,$16,800,],[$Allowance for Doubtful Accounts,,$16,800]]$

c$.$

$\backslash$table$[[,$Debit,Credit$],[$Bad Debt Expense,$21,420,],[$Allowance for Doubtful Accounts,,$21,420]]$

d$.$

$\backslash$table$[[,$Debit,Credit$],[$Bad Debt Expense,$20,160,],[$Allowance for Doubtful Accounts,,$20,160]]$

e$.$

$\backslash$table$[[,$Debit,Credit$],[$Bad Debt Expense,$20,160,],[$Accounts Receivable,,$20,160]]$