Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $276,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make it the Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment? Select the correct answer O Bad Debt Fixpense 57,440 Accounts Receivable $7,440 O Bad Debt Expense $9,440 Allowance for Doubtfal Accounts $9.440 O Bad Debt Expense $7.9-10 Accounts Receivable $7.940 O Bad Debt Expense $8.440 Allowance for Doubtful Accounts $8,440