Gowns, Inc. uses the percentage of receivables basis to estimate its bad debts. At December 31, 2020, Gowns estimates total bad debts that will become uncollectible in the future as 6,608. The existing balance in the Allowance for Doubtful Accounts is a credit balance of 1,408. The Accounts Receivable balance at December 31, 2020 is 105,600. The amount of the bad debt adjusting entry at December 31, 2020 will impact the statement of financial position accounts by O Increasing Accounts Receivable by 5,200. O Increasing the Allowance for Doubtful Accounts by 6,608. O Increasing the Allowance for Doubtful Accounts by 5,200. O Increasing expenses by 6,608.