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 if the Allowance for Doubtful Accounts has a credit balance of $3,000 before adjustment? Select the correct answer. $7,040 $7,040 $7,540 $7,540 Bad Debt Expense Accounts Receivable Bad Debt Expense Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts $9,040 $9,040 $8,040 $8,040