Gordon Company uses the aging method in setting its allowance for doubtful receivables. Allowance for doubtful accounts prior to adjustment has a credit balance of $2,900. Management estimates that due to the economic crisis, a higher level of allowance is necessary and decides that a $5,600 allowance is an appropriate amount at the year-end. The amount of expense to report on the Income Statement will be O a. $5,600. O b. $2,700. O c. $2,900. O d. $8,500.