Blue Bull Co. was preparing its year-end financial statements. The balance in Accounts Receivable at year end was $27,000. Before adjustments to the Allowance for Bad Debt account, there was a credit balance of $800. Blue Bull Co. determines Its Bad Debt Expense account based on Sales for the year and nothing has been put to this account this year. Sales for the year were $300,000 and the company believes 1% of sales will never be collected. Before any adjustments are to be made, Blue Bull Co. is going to write off an Accounts Receivable for $400 for a customer that has just declared bankruptcy. Required: 1. What is the correct balance in Accounts Receivable at year-end? 2. What is the correct balance in the Allowance Account for Bad Debts at year-end? 3. What is the correct balance in the Bad Debt Expense account at year-end? Select from the following possibilities: A) $2,600 debit B) $2,600 credit C) $3,000 debit D) $3,800 debit E) $3,400 credit F) $3,800 credit G) $23,600 debit H) $24,000 debit 1) $27,000 debit J) $26,600 debit K) None of the above