X's Accounts Receivable balance at the end of the year is $27,000. The credit balance in Allowance for Doubtful Accounts, before adjustments, is $2,000. X estimates that 10% of its Accounts Receivable are uncollectible. The adjusting entry will include: 1. Debit to Bad Debt Expense for $2,000. 2. Debit to Allowance for Doubtful Accounts for $3.000. 3. Credit to Bad Debt Expense for $700 4. Credit to Allowance for Doubtful Accounts for $700. 1 O2 O 3 0.4