Question Help The Allowance for Bad Debts account has a debit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method the company's management estimates that uncollectible accounts will be $12,000. What amount of bad debts expense will be reported on the income statement? OA. $12.000 OB. $20,000 OC. $4,000 O D. $7,000