RyTronics uses the percentage of receivables method for estimating bad debts expense. The Accounts Receivable balance is $100,000 at year-end and the total credit sales were $800,000. Management estimates that 4% of receivables will be uncollectible. What adjusting entry will be recorded if the Allowance for Doubtful Accounts has a credit balance of $800 before adjustment? 4,000 Bad Debts Expense Allowance for Doubtful Accounts 4.000 3.200 Bad Debts Expense Allowance for Doubtful Accounts 3,200 3.200 Bad Debts Expense Accounts Receivable 3.200 4,000 Allowance for Doubtful Accounts Bad Debt Expense 4.000