Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $398,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 6% 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 $1,200 before adjustment? Oa. Bad Debt Expense 22,680 Allowance for Doubtful Accounts 22.680 Ob. Bad Debt Expense 23,680 Allowance for Doubtful Accounts 23,680 Oc. Bad Debt Expense 22,180 Allowance for Doubtful Accounts 22.180 Od. Bad Debt Expense 21,680 Allowance for Doubtful Accounts 21,680