The Accounts Receivable balance for Smith Company at December 21, 2014, was $100,000. Smith had credit sales of $500,000. The Allowance for Bad Debit has a current balance of a $2,500 credit balance. Based on last year Bad Debt is estimated to be 3% of accounts receivable. What would be the correct journal entries to make to record the Bad Debt Expense for the year.

A. Debit Bad Bebt Expense $500 and Credit Allowance For Bad Debt $500

B. Credit Allowance For Bad Debt $3000 and Credit Allowance For Bad Debt $3000

C. Credit Allowance For Bad Debt $500 and Debit Bad Bebt Expense $500

D. Debit Bad Bebt Expense $3000 and Credit Allowance For Bad Debt $3000