Blossom Inc. has an unadjusted debit balance of $3,500 in its Allowance for Doubtful Accounts. The company has experienced bad debt losses of 2% of credit sales in prior periods. Blossom reported net credit sales of $1,500,000 for the current period. The required journal entry to record Bad Debt Expense should include a debit to:

Allowance for Doubtful Accounts for $30,000.

Bad Debt Expense for $33,500.

Allowance for Doubtful Accounts for $33,500.

Bad Debt Expense for $30,000.