At the beginning of the current period, Newman Corporation had balances in Accounts Receivable of $201,100 and in Allowance for Doubtful Accounts of $9,900 (credit). During the period, Newman had credit sales of $805,800 and collections on account of $769,300. Newman uses a perpetual inventory system and determined that the cost of goods sold during the period was $669,500. Newman wrote off as uncollectible accounts receivable of $7,500. However, a $2,800 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,400 at the end of the period. The adjusting entry to record bad debts expense for the period is: Bad Debt Expense 25,400 Allowance for Doubtful Accounts 25,400 8,000 Bad Debt Expense Accounts Receivable 8,000 Bad Debt Expense Allowance for Doubtful Accounts 20,200 20,200 15,500 Bad Debt Expense Accounts Receivable 15,500 None of the above The shareholders' equity section of Starr Corporation at December 31, 2015 included the following: $3 preferred shares, cumulative, 10,000 shares authorized, 9,000 shares issued $900,000 Common shares, 500,000 shares authorized, 400,000 shares issued $2,000,000 Dividends were not declared on the preferred shares in 2015 and are in arrears. On September 15, 2016, the board of directors declared dividends on the preferred shares for 2015 and 2016 to shareholders of record on October 1, 2016, payable on October 15, 2016. On November 1, 2016, the board of directors declared a $0.50 per share dividend on the common shares, payable November 30, 2016, to shareholders of record on November 15, 2016. Using the above information, the correct entry on October 15, 2016 would be: Debit dividend payable $27,000; credit cash $27,000 Debit cash dividend $27,000; credit dividend payable $27,000 Debit cash dividend $54,000; credit dividend payable $54,000 Debit dividend payable $54,000; credit cash $54,000 None of the above