Sustainable Supplies prepares the following aging of receivables analysis:

Total Current $1$ to$3031$ to $6061$ to $90$ Over $90$

Accounts receivable $ $57,600$ $ $40,000$ $ $9,000$ $ $3,600$ $ $2,000$ $ $3,000$

Percent uncollectible $1\%3\%5\%8\%11\%$

Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $$500$ credit.

Debit Allowance for Doubtful Accounts $$840$; credit Bad Debts Expense $$840.$

Debit Allowance for Doubtful Accounts $$1,840$; credit Bad Debts Expense $$1,840.$

Debit Bad Debts Expense $$1,340$; credit Allowance for Doubtful Accounts $$1,340.$

Debit Bad Debts Expense $$840$; credit Allowance for Doubtful Accounts $$840.$

Debit Bad Debts Expense $$1,840$; credit Allowance for Doubtful Accounts $$1,840$