Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $354,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 7% 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 $2,000 before adjustment? Select the correct answer. Bad Debt Expense $21,780 Accounts Receivable $21,780 Bad Debt Expense $22.790 Allowance for Doubtful Accounts $22.790 Bad Debt Expense 929.760 Allowance for Doubtful Accounts $23,780 Bad Debt Expense $22.280 Accounts Receivable $22.280