Assume the following unadjusted account balances at the end of the accounting period for Jasek Company: Accounts Receivable, $90,000; Allowances for Doubtful Accounts, $2,400 (debit balance); Net sales, $720,000. If Jasek Companys past experience indicates credit losses of 2% of net sales, the adjusting entry to estimate uncollectible accounts is:

Select one:

A.

Bad Debts Expense

14,400

Accounts Receivable

14,400

B.

Bad Debts Expense

14,400

Allowance for Doubtful Accounts

14,400

C.

Bad Debts Expense

12,000

Allowance for Doubtful Accounts

12,000

D.

Bad Debts Expense

15,300

Allowance for Doubtful Accounts

15,300