Mario Manufacturing began its fiscal year with accounts receivable of $57,000 and allowance for bad debts of $3,400. It had credit sales of $90,500 and collections from customers of $86,200. It wrote off specific receivables of $3,000. Mario estimates bad debts as 5% of credit sales. Mario's journal entry to record bad debt expense would include which of the following? Debit: Bad debt expense for $4,125 Credit: Allowance for bad debts for $4,925 Debit: Bad debt expense for $4,525 Credit: Allowance for bad debts for $3,000