Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $$390,000$ and credit sales are $$1,300,000.$ 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 $$2,500$ before adjustment?

a$.$

Bad Debt Expense $17,000$

Allowance for Doubtful Accounts $17,000$

b$.$

Bad Debt Expense $19,500$

Allowance for Doubtful Accounts $19,500$

c$.$

Bad Debt Expense $65,000$

Allowance for Doubtful Accounts $65,000$

d$.$

Bad Debt Expense $22,000$

Allowance for Doubtful Accounts $22,000$