Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $272,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $1,600 before adjustment? Select the correct answer. Bad Debt Expense $13,000 Allowance for Doubtful Accounts $13,000 Bad Debt Expense $11,000 Accounts Receivable $11,000 Bad Debt Expense $11,500 Accounts Receivable $11,500 Bad Debt Expense $12,000 Allowance for Doubtful Accounts $12,000