The following information is provided for the Jessup Company at December 31, Year3, just before any adjusting entries were made. All balance are normal (debit vs. credit) unless I indicate otherwise.

Credit Sales during Year3 $700,000

Accounts Receivable balance at 12/31/Year3 80,000

Allowance for Uncollectible Accounts at 12/31/Year3 (credit balance aka normal balance) 400

Assume that Jessup uses the percentage of credit sales method. Historically, 1% of credit sales have proven to be uncollectible. After the appropriate adjusting entry, the balance in bad debt expense would be: A. 7800 B. 7000 C. 7400 D. 8200 E. 6600