Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $390,000, and credit sales are $1,300,000. An aging of accounts receivable estimates that $19,500 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.

Account	Debit	Credit
Bad Debt Expense	19,500
Allowance for Doubtful Accounts		19,500

b.

Account	Debit	Credit
Bad Debt Expense	17,000
Allowance for Doubtful Accounts		17,000

c.

Account	Debit	Credit
Bad Debt Expense	22,000
Allowance for Doubtful Accounts		22,000

d.

Account	Debit	Credit
Bad Debt Expense	65,000
Allowance for Doubtful Accounts		65,000