Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $272,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 3% 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? Oa. Bad Debt Expense 4,360 Allowance for Doubtful Accounts 4,360 Ob. Bad Debt Expense 5,360 Allowance for Doubtful Accounts 5,360 Oc. Bad Debt Expense 4,860 Allowance for Doubtful Accounts 4,860 Od. Bad Debt Expense 6,360 Allowance for Doubtful Accounts 6,360