Tanning company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $272,000 and credit sales are $1000000. An aging of accounts receivable shows that approximately 6% of the outstanding receivables will be uncollectible. What adjusting entry will tanning company make if allowance for doubtful accounts has a credit balance of $1000 before adjustment?

A. Bad debt expense 15,320 Allowance for doubtful accounts 15,320 B.Bad debt expense 14,320 Allowance for doubtful accounts 14,320

C. Bad debt expense 14,820 Allowance for doubtful accounts 14,820 D.Bad debt expense 16,320 Allowance for doubtful accounts 16,320