During September, Starbucks recorded total revenues of $1,746,000, all on credit. There were $34,920 of sales discounts. Collections during September were $1,532,000. Total receivables identified as being uncollectible and written off during September were $14,700. starbucks estimates bad debts as 0.5% of net credit revenues.

Note: The accounts receivable balance at the beginning of the year was a 235,000 debit. The allowance for doubtful accounts had a 13,700 credit balance at the beginning of the year.

Choose the journal entry that would be made to adjust for bad debts for the year.

a. Debit Bad debt expense; Credit Allowance for doubtful accounts - 8,730

b. Debit Accounts receivable, Credit Bad debt expense - 8,730

c. Debit Allowance for doubtful accounts, Credit Accounts receivable - 8,730

d. Debit Allowance for doubtful accounts, Credit Accounts receivable - 8,555.40

e. Debit Bad debt expense; Credit Allowance for doubtful accounts - 8,555.40