On January $1,20$XX$,$ Drake Company had a $$100,000$ balance in Accounts Receivable and a $$5,000$ balance in the Allowance for Doubtful Accounts. During the year ended December $31,20$XX$,$ Drake Company: $(1)$ sold $$500,000$ of merchandise on account; $(2)$ collected $$200,000$ cash from account receivables; $(3)$ wrote$-$off accounts receivable balances from two customers totaling $$3,000$ after all collection efforts had been exhausted; and $(4)$ recorded bad debt expense and increased the allowance for doubtful accounts in the amount needed to have a $$10,000$ balance in the allowance for doubtful accounts as of December $31,20$XX$.$ Drake Company management made the estimate that its allowance for doubtful accounts should be $$10,000$ as of December $31,20$XX based on its review of its aged accounts receivable schedule as of December $31,20$XX$.$

The balance in Drake's accounts receivable as of December $31,20$XX before reduction for the allowance for doubtful accounts; and the amount of Drake's bad debt expense recorded in its income statement for the year ended December $31,20$XX are:

Group of answer choices

$$397,000$ and $$10,000$

$$400,000$ and $$10,000$

$$297,000$ and $$3,000$

$$397,000$ and $$8,000$