At year end Accounts Receivable had a balance of $820,000 and it is estimated that 4% of accounts receivable will be uncollectible. The Allowance for Bad Debts account has a credit balance of $5,000 and the company use the percent-of-receivables method to record bad debts expense The adjusted balance in the Allowance for Bad Debts account should be a credit of O A. $37,600 OB. $32,600 OC. $27,800 OD. $32,800