Before year end adjusting entries, Accounts Receivable had a $215,000 balance. The Allowance for Doubtful Accounts had $5,470 credit balance. Based on % of receivables method, $25,400 of year-end receivables are estimated to be uncollectible. After the year end adjusting entry for bad debt expense, what are the balances in the following accounts?

Select one:

a.

Bad Debt Expense, $30,700 and Allowance for Doubtful Accounts, $30,870

b.

Bad Debt Expense, $30,870 and Allowance for Doubtful Accounts, $19,930

c.

Bad Debt Expense, $25,400 and Allowance for Doubtful Accounts, $25,400

d.

Bad Debt Expense, $19,930 and Allowance for Doubtful Accounts, $25,400

e.

Bad Debt Expense, $19,930 and Allowance for Doubtful Accounts, $30,870