Assume the following unadjusted account balances at the end of the accounting period: Accounts Receivable, $$50,000$; Allowance for Doubtful Accounts, $$700($debit balance$)$; and Net sales, $$600,000.$ If the company's past experience indicates credit losses of $10\%$ of gross receivables, the adjusting entry to estimate uncollectible accounts is:

Bad Debts Expense

Accounts Receivable

$5,000$

$5,000$

Bad Debts Expense

Bad Debts Expense

$5,700$

Allowance for Doubtful Accounts

$5,700$

Bad Debts Expense

$6,000$

Allowance for Doubtful Accounts

$6,000$

None of the above