Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $258,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 7% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment?

a.

Bad Debt Expense	16,460
Allowance for Doubtful Accounts		16,460

b.

Bad Debt Expense	14,960
Allowance for Doubtful Accounts		14,960

c.

Bad Debt Expense	14,460
Allowance for Doubtful Accounts		14,460

d.

Bad Debt Expense	15,460
Allowance for Doubtful Accounts		15,460