ge Calautetor Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $324.000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 3% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2.400 before adjustment? Select the correct answer. OBad Debt Expense $7,320 Allowance for Doubtful Accounts $7,320 Bad Debt Expense $6.320 Accounts Receivable $6.320 OBad Debt Expense $6.820 Accounts Receivable 56.820 OBad Debt Expense $8,320 Allowance for Doubtful Accounts $8.320