Forester, Inc.$$s $$180,000$ Accounts Receivable balance at December $31$ consisted of $$160,000$ current balances and $$20,000$ past$-$due balances. At December $31,$ the Allowance for Doubtful Accounts had a credit balance of $$1,600.$ River Forest estimated that $2\%$ of current balances and $15\%$ of past$-$due balances will prove uncollectible.

The adjusting entry to record credit losses is:

Select one:

A$.$

Bad Debts Expense

$4,600$

Allowance for Doubtful Accounts

$4,600$

B$.$

Bad Debts Expense

$4,200$

Accounts Receivable

$4,200$

C$.$

Bad Debts Expense

$5,800$

Allowance for Doubtful Accounts

$5,800$

D$.$

Bad Debts Expense

$7,400$

Allowance for Doubtful Accounts

$7,400$