Company B estimates bad debt expense at 3% of credit sales, which were $610,00 for the year. Allowance for Doubtful Accounts has a credit balance of $3,000. The journal entry to record bad debt expense is:

1 Bad Debt Expense 15,300

AFDA 15300

2. Allowance for Doubtful Account 18,300

Bad Debt Expense 18,300

3 Bad Debt Expense 18,300

AFDA 18,300

4. Allowance for Doubtful Accounts 15,300

Bad Debt Expense 15,300