Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $40000 and credit sales are $160000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Blue Spruce Corp. make if the Allowance for Doubtful Accounts has a credit balance of $400 before adjustment? Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts 2800 2000 1600 800 2800 2000 1600 800