What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,200 before adjustment?

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $374,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,200 before adjustment? Select the correct answer. $16,000 $ 16,000 $15,500 $15,500 Bad Debt Expense Accounts Receivable Bad Debt Expense Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts $16,500 $16,500 $17,500 $17,500