Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $310,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 3% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,800 before adjustment?

a.

Bad Debt Expense	$5,500
Allowance for Doubtful Accounts		$5,500

b.

Bad Debt Expense	$7,500
Allowance for Doubtful Accounts		$7,500

c.

Bad Debt Expense	$6,500
Allowance for Doubtful Accounts		$6,500

d.

Bad Debt Expense	$6,000
Allowance for Doubtful Accounts		$6,000