Arab Company uses the percentage of receivables method for recording bad debt expense. End of the year accounts receivable are $170000, and the allowance account has a $2000 debit balance Management estimates that 2% occounts receivable will be uncollectible. What adjusting entry will Arab Company make to record the bod debt expense? O a debit to Bad Debt Expense for $1400, credit to Allowance for Doubtful Accounts for $1400. b. debit to Bad Debt Expense for $3400, credit to Accounts Receivable for $3400. c debit to Bad Debt Expense for $5400, credit to Allowance for Doubtful Accounts for $5400 od debit to Bad Debt Expense for $5400, credit to Accounts Receivable for $5400, Next page