Dhofar Associates had total gross sales of OMR 500000 (total cash sales are 40% of total gross sales) in the current year, an ending accounts receivable balance of OMR 180000, and OMR 4000 credit balance before adjustments in the Allowance for Doubtful Accounts account. Sales discounts are OMR 15000. Bad debts are estimated as 4% of net credit sales. The adjusting amount to record bad debt expense for the year would include a:

Select one:

a. OMR 11400 debit to Bad Debt Expense

b. OMR 7000 debit to Bad Debt Expense

c. OMR 12000 debit to Bad Debt Expense

d. OMR 19400 debit to Bad Debt Expense