Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $398,000 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 Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment? Oo Bad Debt Expense 13,720 Allowance for Doubtful Accounts 13,720 Bad Debt Expense 15,720 Allowance for Doubtful Accounts Bed Debt Expense 14,720 Allowance for Doubtful Accounts 14,720 b. . 15,720 Od Bad Debt Expense Allowance for Doubtful Accounts 14,220 14,220