Blue Jay Corporation's accounts receivable balance is $70,000 at year-end, and the total credit sales were $600,000. Using an aging schedule, management estimates that $4,000 of receivables will be uncollectible. What adjusting entry will have to be made if the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment? Bad Debts Expense Accounts Receivable 3,500 3,500 Bad Debts Expense 4,000 Allowance for Doubtful Accounts Bad Debts Expense Allowance for Doubtful Accounts Bad Debts Expense Allowance for Doubtful Accounts 4,500 3,500 4,000 4,500 3,500