1. Company B estimates bad debt expense to be 2% of credit sales, which were $610,000 for the year. If the allowance account has a credit balance of $900 before adjustment, the journal entry necessary to record bad debt expense is:

		A. debit Allowance for Doubtful Accounts for $11,300; credit Bad Debt Expense for $11,300
		B. debit Bad Debt Expense for $13,100; credit Allowance for Doubtful Accounts for $13,100
		C. debit Allowance for Doubtful Accounts for $12,200; credit Bad Debt Expense for $12,200
		D. debit Bad Debt Expense for $11,300; credit Allowance for Doubtful Accounts for $11,300
		E. debit Allowance for Doubtful Accounts for $13,100; credit Bad Debt Expense for $13,100
		F. debit Bad Debt Expense for $12,200; credit Allowance for Doubtful Accounts for $12,200