The Reingold Hat Company uses the allowance method to account for bad debts. During 2024, the company recorded $800,000 in credit sales. At the end of 2024, account balances were: Accounts receivable, $120,000; Allowance for uncollectible accounts, $3,000 (credit). If bad debt expense is estimated to be 3% of credit sales, the appropriate adjusting entry will include a debit to bad debt expense of

A. $24,000

B. Zero.

C. $27,000

D. $21,000