Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $376,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 7% of the outstanding rectivables will be uncollectible. What adjusting entry wil Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment? Om Bad Debt Expense 26,120 Allowance for Doubtful Accounts 26,120 Ob Bad Debt Expense 25,120 Allowance for Doubtful Accounts 25,120 Od Bad Debt bpense 24,620 Allowance for Doubtful Accounts 24,620 Od Bad Debt Expense 24,120 Allowance for Doubtful Accounts 24,120