The following information is available for Counting Crows Corporation's accounting records at the beginning of 2020:

Debit

Accounts Receivable - 1/1/20

$60,000

Credit

Allowance for Doubtful Accounts - 1/1/20

$2,000

Additional Information:

During 2020, sales on account amounted to $500,000, collections on account amounted to $515,000, and $1,700 of receivables were written off as uncollectible.

On 12/31/20, Counting Crows estimates 4% of the outstanding gross accounts receivable balance to be uncollectible.

Which of the following adjusting entries should Counting Crows make at 12/31/20 related to bad debts?

Select one:

a.Debit Bad Debt Expense 200

Credit Allowance for Doubtful Accounts 200

b.Debit Bad Debt Expense 2,032

Credit Allowance for Doubtful Accounts 2,032

c.Debit Bad Debt Expense 1,732

Credit Allowance for Doubtful Accounts 1,732

d.Debit Bad Debt Expense 1,432

Credit Allowance for Doubtful Accounts 1,432