1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $392,000 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 $2,800 before adjustment?

   a.

   Bad Debt Expense	11,880
   Allowance for Doubtful Accounts		11,880

   b.

   Bad Debt Expense	12,880
   Allowance for Doubtful Accounts		12,880

   c.

   Bad Debt Expense	12,380
   Allowance for Doubtful Accounts		12,380

   d.

   Bad Debt Expense	13,880
   Allowance for Doubtful Accounts		13,880