Assume the following unadjusted account balances at the end of the accounting period:

Accounts receivable

Allowance for Doubtful Accounts

Net sales

$$50,000$

$700(credit)$

$$600,000$

$$600,000$

If the company's past experience indicates credit losses of $1\%$ of net sales, the adjusting entry to record bad debts should be for

$$5,300$

$$500$

$$6,000$

$$6,700$