XYZ Co.'s trial balance before adjusting entries shows the following balances:

	Debits	Credits
Accounts Receivable	$180,000
Allowance for Doubtful Accounts	3,500
Sales (all on credit)		$1,000,000

What is the entry to bad debt expense, assuming that the allowance is to provide for doubtful accounts on the basis of 5% of gross accounts receivable?

Select one:

a. $9,000 credit

b. $12,500 credit

c. $9,000 debit

d. $3,500 credit