Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $286,000 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 Tonning Company make if the Allowance for Doubtful Accounts has a credit balance of $2.000 before adjustment? a. Bad Debt Expense 8,440 Allowance for Doubtful Accounts 8,440 b. Bad Debt Expense 10,440 Allowance for Doubtful Accounts 10,440 c. Bad Debt Expense 8,940 Allowance for Doubtful Accounts 8,940 d. Bad Debt Expense 9,440 Allowance for Doubtful Accounts 9,440