Vaughn Manufacturing uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $330000 and credit sales are $1320000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Vaughn Manufacturing make if the Allowance for Doubtful Accounts has a credit balance of $3300 before adjustment?

Bad Debt Expense	19800
	Allowance for Doubtful Accounts		19800

Bad Debt Expense	13200
	Allowance for Doubtful Accounts		13200

Bad Debt Expense	6600
	Allowance for Doubtful Accounts		6600

Bad Debt Expense	9900
	Accounts Receivable		9900