Sheridan Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $150000 and credit sales are $1510000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Sheridan Company make if the Allowance for Doubtful Accounts has a credit balance of $1500 before adjustment?

a. Bad Debt Expense		15100
	Allowance for Doubtful Accounts		15100

b. Bad Debt Expense		4500
	Accounts Receivable		4500

c. Bad Debt Expense		15100
	Accounts Receivable		15100

d. Bad Debt Expense		4500
	Allowance for Doubtful Accounts		4500