Brown Company's account balances at December 31, 2022 for Accounts Receivable and the related Allowance for Doubtful Accounts are $460,000 debit and $700 credit, respectively. From an aging of accounts receivable, it is estimated that $12,500 of the December 31 receivables will be uncollectible. The necessary adjusting entry would be:

Group of answer choices

DR Allowance for Doubtful Accounts $11,800 CR Bad Debt Expense $11,800

DR Allowance for Doubtful Accounts $12,500 CR Bad Debt Expense $12,500

DR Bad Debt Expense $11,800 CR Allowance for Doubtful Accounts $11,800

DR Bad Debt Expense $12,500 CR Allowance for Doubtful Accounts $12,500