Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $308,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 8% 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?

Select the correct answer.

Bad Debt Expense ????????????????????????????????????????????????????????????$24,440 ????????????Allowance for Doubtful Accounts ????????????????????????????????????????????????????????????$24,440

Bad Debt Expense ????????????????????????????????????????????????????????????$22,440 ????????????Accounts Receivable ?????????????????????????????????????????????????????????????????????????????????$22,440

Bad Debt Expense ????????????????????????????????????????????????????????????$22,940 ????????????Accounts Receivable ?????????????????????????????????????????????????????????????????????????????????$22,940

Bad Debt Expense ????????????????????????????????????????????????????????????$23,440 ????????????Allowance for Doubtful Accounts ????????????????????????????????????????????????????????????$23,440