Ryan Leaf Company uses the percentage-of-receivables method for recording bad debts expense. The accounts receivable balance is $60.000 at year-end and the total credit sales were $2,300,000 for the year. Management estimates that 3% of receivables will be uncollectible. What adjusting entry should be made if the Allowance for Doubtful Accounts has a credit balance of $200 before adjustment? 1,600 O Bad Debts Expense Accounts Receivable 1.600 1,800 O Bad Debts Expense Allowance for Doubtful Accounts 1,800 1.800 Allowance for Doubtful Accounts Bad Debt Expense 1,800 1,600 O Bad Debts Expense Allowance for Doubtful Accounts 1,600