Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $374,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 5% 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 $2,800 before adjustment?

Select the correct answer.

Bad Debt Expense$16,900

Allowance for Doubtful Accounts $16,900

Bad Debt Expense$15,900

Allowance for Doubtful Accounts $15,900

Bad Debt Expense$15,400

Accounts Receivable $15,400

Bad Debt Expense$14,900

Accounts Receivable $14,900