Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $296,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment? Oa. Bad Debt Expense $12,200 Allowance for Doubtful Accounts $12,200 Ob. Bad Debt|\xpense $13,200 Allowance for Doubtful Accounts $13,200 Oc. $11,700 Bad Debt Expense Allowance for Doubtful Accounts $11,700 Od. $11,200 Bad Debt Expense Allowance for Doubtful Accounts $11,200