At the start of the current year, Javier Company had a credit balance in the Allowance for Doubtful Accounts of $6,000. During the year an adjustment of 2% of sales was made for estimated uncollectible accounts. Sales for the year were $2,000,000 and $30,000 of accounts receivable were written off as worthless. Recoveries of accounts previously written off of $1,000 were made during the year. The year end financial statements should show:

A) Bad Debts exsepnse of $34,000 B) Bad Debts exspense of $46,000 C) Allowance for Doubtful Accounts with a credit balance of $17,000 D) Allowance for Doubtful Accounts with a credit balance of $10,000 E) None of the above