Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $380,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 6% 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 $1,000 before adjustment? a. Bad Debt Expense 22,800 Allowance for Doubtful Accounts 22,800 ob. Bad Debt Expense 20,800 Allowance for Doubtful Accounts 20,800 OC. Bad Debt Expense 21,800 Allowance for Doubtful Accounts 21,800 od. Bad Debt Expense 21,300 Allowance for Doubtful Accounts 21,300