McDaniel Company uses the income statement approach in estimating uncollectible. At the end of the year, McDaniel Corporation estimates that 2% of its credit sales of $700,000 will be uncollectible. Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment. The adjusting entry involves a debit to

	A.	Bad Debts Expense and a credit to Accounts Receivable for $12,000.
	B.	Bad Debts Expense and a credit to Allowance for Doubtful Accounts for $14,000.
	C.	Bad Debts Expense and a credit to Allowance for Doubtful Accounts for $16,000.
		D. Bad Debts Expense and a credit to Allowance for Doubtful Accounts for $12,000.